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METTLER-TOLEDO INTERNATIONAL INC. REPORTS FOURTH QUARTER 2021 RESULTS

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Mettler-Toledo International announced impressive fourth-quarter results for 2021, reporting an 11% increase in both sales and local currency sales compared to the prior year, totaling $1.037 billion. Net earnings per diluted share (EPS) reached $9.94, up from $9.03, while adjusted EPS grew 14% to $10.53. Despite global supply chain challenges, the company achieved a solid operating profit increase. For 2022, management anticipates local currency sales growth of about 7% with adjusted EPS projected between $38.15 and $38.50.

Positive
  • Fourth quarter sales increased by 11% to $1.037 billion.
  • Net EPS rose to $9.94, compared to $9.03 in the previous year.
  • Adjusted EPS grew 14% to $10.53.
  • Operating profit increased to $319.1 million, a 9% rise from $292.8 million.
Negative
  • Forecasting remains challenging due to dynamic market conditions and COVID-19 uncertainties.

COLUMBUS, Ohio, Feb. 10, 2022 /PRNewswire/ -- Mettler-Toledo International Inc. (NYSE: MTD) today announced fourth quarter results for 2021. Provided below are the highlights:

  • Reported sales and local currency sales both increased 11% in the quarter compared with the prior year.
  • Net earnings per diluted share as reported (EPS) were $9.94, compared with $9.03 in the prior-year period. Adjusted EPS was $10.53, an increase of 14% over the prior-year amount of $9.26. Adjusted EPS is a non-GAAP measure, and a reconciliation to EPS is included on the last page of the attached schedules.

Fourth Quarter Results

Patrick Kaltenbach, President and Chief Executive Officer, stated, "We had a great finish to the year as we capitalized on strong customer demand and executed very well. Growth was particularly strong in the Americas and Asia/Rest of World, and our Laboratory and Industrial product lines had robust growth. Despite higher costs associated with challenges in the global supply chain, we had a very solid increase in operating profit and strong earnings growth. We had excellent cash flow generation in 2021."

GAAP Results

EPS in the quarter was $9.94, compared with the prior-year amount of $9.03. 

Compared with the prior year, total reported sales increased 11% to $1.037 billion. By region, reported sales increased 16% in the Americas, 1% in Europe and 14% in Asia/Rest of World. Earnings before taxes amounted to $286.0 million, compared with $269.2 million in the prior year.

Non-GAAP Results

Adjusted EPS was $10.53, an increase of 14% over the prior-year amount of $9.26.

Compared with the prior year, total sales in local currency increased 11%. By region, local currency sales increased 16% in the Americas, 4% in Europe and 14% in Asia/Rest of World. Adjusted Operating Profit amounted to $319.1 million, a 9% increase from the prior-year amount of $292.8 million.

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

Full Year Results

GAAP Results

EPS was $32.78, compared with the prior-year amount of $24.91.

Compared with the prior year, total reported sales increased 21% to $3.718 billion. By region, reported sales increased 20% in the Americas, 15% in Europe and 26% in Asia/Rest of World. Earnings before taxes amounted to $949.4 million, compared with $748.7 million in the prior year.

Non-GAAP Results

Adjusted EPS was $34.01, an increase of 32% over the prior-year amount of $25.72.

Compared with the prior year, total sales in local currency increased 18% as currency benefited sales growth by 3%. By region, local currency sales increased 20% in the Americas, 12% in Europe and 21% in Asia/Rest of World. Adjusted Operating Profit amounted to $1.058 billion, a 26% increase from the prior-year amount of $840.7 million.

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

Outlook   

The Company stated that forecasting continues to be challenging. Management cautions that market conditions are dynamic and changes to the business environment can happen quickly. Uncertainty remains surrounding the impact of COVID-19 and the challenges in the global supply chain on the economic environment. The estimates include uncertainty and management acknowledges that market conditions are subject to change.

The Company said that based on its assessment of market conditions today, management anticipates local currency sales growth in 2022 will be approximately 7%. This sales growth is expected to result in Adjusted EPS in the range of $38.15 to $38.50, which represents a growth rate of 12% to 13%.  This compares with previous local currency sales guidance of approximately 6% and Adjusted EPS guidance of $37.25 to $37.65.

Based on today's assessment of market conditions, management anticipates local currency sales growth for the first quarter of 2022 will be approximately 10%, and Adjusted EPS is forecasted to be $7.25 to $7.35, a growth rate of 11% to 12%.

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, "We continued to strengthen our competitive position in 2021. Innovation nourished our excellent product portfolio and comprehensive services offering, and combined with our Spinnaker sales and marketing strategies, helped us to capture growth opportunities.  We successfully navigated challenges in the global supply chain to meet customer demands. Our culture of agility and execution further reinforced our brand while our strong results allowed us to make important investments for future growth. We also furthered our great track record on Environment, Social, and Governance initiatives by committing to establish science-based targets to drive greater reductions in our impact on the environment. While market conditions are currently good, challenges remain in the global supply chain and we remain cautious about COVID-19 and its ultimate impact on the global economy. We are confident in our strategic growth and margin initiatives and our ability to gain market share. We believe we are well positioned to deliver strong results in 2022 and beyond."

Other Matters

The Company will host a conference call to discuss its quarterly results today (Thursday, February 10) 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. 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. 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 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. 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, 2020 and other reports filed with the SEC from time to time.

 

METTLER-TOLEDO INTERNATIONAL INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(amounts in thousands except share data)

(unaudited)























Three months ended






Three months ended








December 31, 2021


% of sales


December 31, 2020


% of sales






















Net sales



$1,037,239


(a)


100.0





$937,985




100.0



Cost of sales



430,106




41.5





378,941




40.4



Gross profit



607,133




58.5





559,044




59.6























Research and development



45,615




4.4





39,866




4.3



Selling, general and administrative 



242,445




23.4





226,369




24.1



Amortization



16,934




1.6





14,657




1.6



Interest expense



11,541




1.1





9,505




1.0



Restructuring charges



2,520




0.2





3,181




0.3



Other charges (income), net



2,102


(b)


0.2





(3,714)




(0.4)



Earnings before taxes



285,976




27.6





269,180




28.7























Provision for taxes



55,105




5.3





52,885




5.6



Net earnings



$230,871




22.3





$216,295




23.1























Basic earnings per common share:



















Net earnings 



$10.08









$9.15







Weighted average number of common shares



22,912,071









23,642,415



























Diluted earnings per common share:



















Net earnings 



$9.94









$9.03







Weighted average number of common 



23,220,331









23,965,853







  and common equivalent shares







































Note:



















(a)

Local currency sales increased 11% as compared to the same period in 2020.























RECONCILIATION OF EARNINGS BEFORE TAXES TO ADJUSTED OPERATING PROFIT























Three months ended






Three months ended








December 31, 2021


% of sales


December 31, 2020


% of sales






















Earnings before taxes



$285,976









$269,180







Amortization



16,934









14,657







Interest expense



11,541









9,505







Restructuring charges



2,520









3,181







Other charges (income), net



2,102


(b)







(3,714)







Adjusted operating profit



$319,073


(c)


30.8





$292,809




31.2























Notes:



















(b)

Other charges (income), net for the three months ended December 31, 2021 includes a $6.8 million charge to increase the PendoTECH acquisition contingent consideration and related obligations, and $0.6 million of acquisition transaction costs.



(c)

Adjusted operating profit increased 9% as compared to the same period in 2020.



 

METTLER-TOLEDO INTERNATIONAL INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(amounts in thousands except share data)

(unaudited)























Twelve months ended






Twelve months ended








December 31, 2021


% of sales


December 31, 2020


% of sales


















Net sales



$3,717,930


(a)


100.0





$3,085,177




100.0



Cost of sales



1,546,377




41.6





1,284,146




41.6



Gross profit



2,171,553




58.4





1,801,031




58.4























Research and development



169,766




4.6





140,102




4.5



Selling, general and administrative 



943,976




25.4





820,221




26.6



Amortization



63,075




1.7





56,665




1.8



Interest expense



43,242




1.2





38,616




1.3



Restructuring charges



5,239




0.1





10,516




0.3



Other charges (income), net



(3,106)


(b)


(0.1)





(13,832)




(0.4)



Earnings before taxes



949,361




25.5





748,743




24.3























Provision for taxes



180,376




4.8





146,004




4.8



Net earnings



$768,985




20.7





$602,739




19.5























Basic earnings per common share:



















Net earnings 



$33.25









$25.24







Weighted average number of common shares



23,129,862









23,882,648



























Diluted earnings per common share:



















Net earnings 



$32.78









$24.91







Weighted average number of common 



23,457,630









24,199,230







  and common equivalent shares







































Note:



















(a)

Local currency sales increased 18% as compared to the same period in 2020.























RECONCILIATION OF EARNINGS BEFORE TAXES TO ADJUSTED OPERATING PROFIT























Twelve months ended






Twelve months ended








December 31, 2021


% of sales


December 31, 2020


% of sales






















Earnings before taxes



$949,361









$748,743







Amortization



63,075









56,665







Interest expense



43,242









38,616







Restructuring charges



5,239









10,516







Other charges (income), net



(3,106)


(b)







(13,832)







Adjusted operating profit



$1,057,811


(c)


28.5





$840,708




27.2























Notes:



















(b)

Other charges (income), net for the twelve months ended December 31, 2021 includes a $6.8 million charge to increase the PendoTECH acquisition contingent consideration and related obligations, and $3.4 million of acquisition transaction costs.



(c)

Adjusted operating profit increased 26% as compared to the same period in 2020.



 


METTLER-TOLEDO INTERNATIONAL INC.


CONDENSED CONSOLIDATED BALANCE SHEETS


(amounts in thousands)


(unaudited)

























December 31, 2021



December 31, 2020












Cash and cash equivalents



$98,564





$94,254


Accounts receivable, net



647,335





593,809


Inventories



414,543





297,611


Other current assets and prepaid expenses



108,916





71,230


Total current assets



1,269,358





1,056,904













Property, plant and equipment, net



799,365





798,868


Goodwill and other intangibles assets, net



956,072





747,055


Other non-current assets



302,003





211,722


Total assets



$3,326,798





$2,814,549













Short-term borrowings and maturities of long-term debt



$101,134





$50,317


Trade accounts payable



272,911





175,801


Accrued and other current liabilities



772,493





614,209


Total current liabilities



1,146,538





840,327













Long-term debt



1,580,808





1,284,174


Other non-current liabilities



428,031





407,373


Total liabilities



3,155,377





2,531,874













Shareholders' equity



171,421





282,675


Total liabilities and shareholders' equity



$3,326,798





$2,814,549


 

METTLER-TOLEDO INTERNATIONAL INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 (amounts in thousands)

 (unaudited)












Three months ended


Twelve months ended



December 31,


December 31,



2021


2020


2021


2020










Cash flow from operating activities:









    Net earnings


$230,871


$216,295


$768,985


$602,739

    Adjustments to reconcile net earnings to









      net cash provided by operating activities:









Depreciation


11,542


11,095


44,982


42,044

Amortization


16,934


14,657


63,075


56,665

Deferred tax expense (benefit)


6,635


(5,794)


563


(12,784)

Share-based compensation


5,702


5,439


19,595


18,687

Increase in acquisition contingent consideration


6,849


-


6,849


-

Other


381


(2,399)


381


(2,399)

Increase in cash resulting from changes in









   operating assets and liabilities


(37,808)


11,576


4,395


19,747

                Net cash provided by operating activities


241,106


250,869


908,825


724,699










Cash flows from investing activities:









    Proceeds from sale of property, plant and equipment


253


60


3,652


3,106

    Purchase of property, plant and equipment


(37,784)


(35,066)


(107,580)


(92,494)

    Acquisitions


(27,475)


-


(220,862)


(6,242)

    Other investing activities


2,123


4,691


10,682


(4,730)

                Net cash used in investing activities


(62,883)


(30,315)


(314,108)


(100,360)










Cash flows from financing activities:









    Proceeds from borrowings


789,198


340,680


2,427,519


1,489,040

    Repayments of borrowings


(786,369)


(252,678)


(2,035,546)


(1,483,869)

    Proceeds from exercise of stock options


5,549


525


20,463


26,719

    Repurchases of common stock 


(272,500)


(374,999)


(999,998)


(774,998)

    Other financing activities


(123)


-


(2,987)


(800)

                Net cash used in financing activities


(264,245)


(286,472)


(590,549)


(743,908)










Effect of exchange rate changes on cash and cash equivalents


914


6,486


142


6,038










Net increase (decrease) in cash and cash equivalents


(85,108)


(59,432)


4,310


(113,531)










Cash and cash equivalents:









    Beginning of period


183,672


153,686


94,254


207,785

    End of period


$98,564


$94,254


$98,564


$94,254



















RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO ADJUSTED FREE CASH FLOW










Net cash provided by operating activities


$241,106


$250,869


$908,825


$724,699

    Payments in respect of restructuring activities


2,607


2,280


10,029


8,541

    Payments for acquisition costs


462


-


2,706


-

    Transition tax payment


-


-


4,288


4,264

    Proceeds from sale of property, plant and equipment


253


60


3,652


3,106

    Purchase of property, plant and equipment


(37,784)


(35,066)


(107,580)


(92,494)

Adjusted free cash flow


$206,644


$218,143


$821,920


$648,116

 

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, 2021



1%


16%


14%


11%




Twelve Months Ended December 31, 2021



15%


20%


26%


21%
















Local Currency Sales Growth













Three Months Ended December 31, 2021



4%


16%


14%


11%




Twelve Months Ended December 31, 2021



12%


20%


21%


18%





























RECONCILIATION OF DILUTED EPS AS REPORTED TO ADJUSTED DILUTED EPS 


(unaudited)

















Three months ended

Twelve months ended



December 31,

December 31,



2021


2020


% Growth


2021


2020


% Growth














EPS as reported, diluted

$9.94


$9.03


10%


$32.78


$24.91


32%














Purchased intangible amortization, net of tax

0.21

(a)

0.12

(a)



0.70

(a)

0.46

(a)


Restructuring charges, net of tax

0.09

(b)

0.11

(b)



0.18

(b)

0.35

(b)


Income tax expense

0.03

(c)

-

(c)



-


-



Acquisition costs, net of tax

0.26

(d)

-




0.35

(d)

-
















Adjusted EPS, diluted

$10.53


$9.26


14%


$34.01


$25.72


32%














Notes:












(a)

Represents the EPS impact of purchased intangibles amortization of $6.3 million ($4.8 million net of tax) and $3.7 million ($2.8 million net of tax) for the three months ended December 31, 2021 and 2020, and of $21.6 million ($16.3 million net of tax) and $14.9 million ($11.2 million net of tax) for the twelve months ended December 31, 2021 and 2020, respectively.

(b)

Represents the EPS impact of restructuring charges of $2.5 million ($2.0 million after tax) and $3.2 million ($2.6 million after tax) for the three months ended December 31, 2021 and 2020, and $5.2 million ($4.2 million after tax) and $10.5 million ($8.5 million after tax) for the twelve months ended December 31, 2021 and 2020, respectively, which primarily include employee related costs.

(c)

Represents the EPS impact of the difference between our reported and annual tax rate before non-recurring discrete items due to the timing of excess tax benefits associated with stock option exercises. Also includes a $0.14 EPS benefit for the three months ended December 31, 2021 for the reduction in our annualized effective tax rate to 19.0% for the first three quarters of 2021 and a $0.20 EPS benefit for the three months ended December 31, 2020 for the reduction in our annualized effective tax rate to 19.5% for the first three quarters of 2020.

(d)

Represents a $6.8 million charge ($5.5 million after tax) to increase the PendoTECH acquisition contingent consideration and related obligations for the three and twelve months ended December 31, 2021. Also includes the EPS impact of acquisition transaction costs of $0.6 million ($0.4 million after tax) and $3.4 million ($2.7 million after tax) for the three and twelve months ended December 31, 2021, respectively. 

 

Cision View original content:https://www.prnewswire.com/news-releases/mettler-toledo-international-inc-reports-fourth-quarter-2021-results-301480252.html

SOURCE Mettler-Toledo International Inc.

FAQ

What were Mettler-Toledo's Q4 results for 2021?

Mettler-Toledo reported a sales increase of 11% to $1.037 billion, with net EPS of $9.94 and adjusted EPS of $10.53.

What is the expected sales growth for Mettler-Toledo in 2022?

Mettler-Toledo anticipates local currency sales growth of approximately 7% for 2022.

What challenges did Mettler-Toledo face in 2021?

Despite strong performance, Mettler-Toledo faced challenges from global supply chain issues and uncertainties related to COVID-19.

What is the forecasted adjusted EPS range for Q1 2022 for Mettler-Toledo?

The forecasted adjusted EPS for Q1 2022 is between $7.25 and $7.35.

How did Mettler-Toledo perform in different regions in 2021?

Sales increased by 16% in the Americas, 1% in Europe, and 14% in Asia/Rest of World.

Mettler-Toledo International

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