Mettler-Toledo International Inc. Reports Fourth Quarter 2022 Results
Mettler-Toledo International Inc. (NYSE: MTD) reported fourth-quarter results for 2022, showing a 2% increase in reported sales to $1.058 billion, and a 15% rise in adjusted EPS to $12.10. The Americas region saw sales grow by 8%, while Europe and Asia experienced declines of 3% and 1%, respectively. Full-year EPS rose to $38.41, up from $32.78, with total sales increasing 5% to $3.920 billion. The company anticipates local currency sales growth of 6% for Q1 2023 and forecasts adjusted EPS between $8.55 to $8.65. Management highlights challenges due to currency fluctuations and uncertainties in the economic landscape.
- Adjusted EPS increased 15% to $12.10, outpacing previous year's $10.53.
- Sales in the Americas grew by 8%, demonstrating market resilience.
- Full year adjusted EPS rose to $39.65, reflecting a 17% growth.
- Adjusted Operating Profit increased by 12% to $358.6 million for Q4.
- Currency fluctuations negatively impacted sales growth by 7% in Q4.
- Sales in Europe decreased by 3% and by 1% in Asia/Rest of World.
- Forecast for 2023 includes a 1% headwind to Adjusted EPS growth due to currency.
-
Reported sales increased
2% compared with the prior year. In local currency, sales increased9% in the quarter as currency reduced sales growth by7% . -
Net earnings per diluted share as reported (EPS) were
, compared with$11.86 in the prior-year period. Adjusted EPS was$9.94 , an increase of$12.10 15% over the prior-year amount of . Adjusted EPS is a non-GAAP measure, and a reconciliation to EPS is included on the last page of the attached schedules.$10.53
Fourth Quarter Results
GAAP Results
EPS in the quarter was
Compared with the prior year, total reported sales increased
Non-GAAP Results
Adjusted EPS was
Compared with the prior year, total sales in local currency increased
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
Compared with the prior year, total reported sales increased
Non-GAAP Results
Adjusted EPS was
Compared with the prior year, total sales in local currency increased
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 remains challenging. Management cautions that market conditions are dynamic and changes to the business environment can occur quickly. There is uncertainty in the economic environment today, including the risk of recession in some countries, and management acknowledges that market conditions are subject to change. Based on today's assessment of market conditions, management anticipates local currency sales growth for the first quarter of 2023 will be approximately
For the full year, management anticipates local currency sales growth in 2023 will be approximately
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, “I am very proud of the agility and execution our team demonstrated in 2022 as we faced unexpected challenges like the war in
Other Matters
The Company will host a conference call to discuss its quarterly results tomorrow (
Forward-Looking Statements Disclaimer
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 recent developments in
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
(amounts in thousands except share data) | |||||||
(unaudited) | |||||||
Three months ended |
|
|
|
Three months ended |
|
|
|
|
|
% of sales |
|
|
|
% of sales |
|
Net sales |
|
(a) |
100.0 |
|
100.0 |
||
Cost of sales | 425,545 |
40.2 |
430,106 |
41.5 |
|||
Gross profit | 632,140 |
59.8 |
607,133 |
58.5 |
|||
Research and development | 45,942 |
4.3 |
45,615 |
4.4 |
|||
Selling, general and administrative | 227,586 |
21.5 |
242,445 |
23.4 |
|||
Amortization | 16,542 |
1.6 |
16,934 |
1.6 |
|||
Interest expense | 16,805 |
1.6 |
11,541 |
1.1 |
|||
Restructuring charges | 1,753 |
0.2 |
2,520 |
0.2 |
|||
Other charges (income), net | (1,502) |
(0.1) |
2,102 |
0.2 |
|||
Earnings before taxes | 325,014 |
30.7 |
285,976 |
27.6 |
|||
Provision for taxes | 59,180 |
5.6 |
55,105 |
5.3 |
|||
Net earnings |
|
25.1 |
|
22.3 |
|||
Basic earnings per common share: | |||||||
Net earnings |
|
|
|||||
Weighted average number of common shares | 22,209,188 |
22,912,071 |
|||||
Diluted earnings per common share: | |||||||
Net earnings |
|
|
|||||
Weighted average number of common | 22,407,796 |
23,220,331 |
|||||
and common equivalent shares | |||||||
Note: | |||||||
(a) Local currency sales increased |
RECONCILIATION OF EARNINGS BEFORE TAXES TO ADJUSTED OPERATING PROFIT | |||||||
Three months ended |
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|
|
Three months ended |
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|
|
|
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% of sales |
|
|
|
% of sales |
|
Earnings before taxes |
|
|
|||||
Amortization | 16,542 |
16,934 |
|||||
Interest expense | 16,805 |
11,541 |
|||||
Restructuring charges | 1,753 |
2,520 |
|||||
Other charges (income), net | (1,502) |
2,102 |
|||||
Adjusted operating profit |
|
(b) |
33.9 |
|
30.8 |
||
Note: | |||||||
(b) Adjusted operating profit increased |
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
(amounts in thousands except share data) | |||||||
(unaudited) | |||||||
Twelve months ended |
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|
|
Twelve months ended |
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% of sales |
|
|
|
% of sales |
|
Net sales |
|
(a) |
100.0 |
|
100.0 |
||
Cost of sales | 1,611,667 |
41.1 |
1,546,377 |
41.6 |
|||
Gross profit | 2,308,042 |
58.9 |
2,171,553 |
58.4 |
|||
Research and development | 177,122 |
4.5 |
169,766 |
4.6 |
|||
Selling, general and administrative | 938,461 |
23.9 |
943,976 |
25.4 |
|||
Amortization | 66,239 |
1.7 |
63,075 |
1.7 |
|||
Interest expense | 55,392 |
1.4 |
43,242 |
1.2 |
|||
Restructuring charges | 9,556 |
0.2 |
5,239 |
0.1 |
|||
Other charges (income), net | (9,320) |
(0.1) |
(3,106) |
(0.1) |
|||
Earnings before taxes | 1,070,592 |
27.3 |
949,361 |
25.5 |
|||
Provision for taxes | 198,090 |
5.0 |
180,376 |
4.8 |
|||
Net earnings |
|
22.3 |
|
20.7 |
|||
Basic earnings per common share: | |||||||
Net earnings |
|
|
|||||
Weighted average number of common shares | 22,491,790 |
23,129,862 |
|||||
Diluted earnings per common share: | |||||||
Net earnings |
|
|
|||||
Weighted average number of common | 22,718,290 |
23,457,630 |
|||||
and common equivalent shares | |||||||
Note: |
|||||||
(a) Local currency sales increased |
RECONCILIATION OF EARNINGS BEFORE TAXES TO ADJUSTED OPERATING PROFIT | |||||||
|
|||||||
Twelve months ended | Twelve months ended | ||||||
% of sales | % of sales | ||||||
Earnings before taxes |
|
|
|||||
Amortization | 66,239 |
63,075 |
|||||
Interest expense | 55,392 |
43,242 |
|||||
Restructuring charges | 9,556 |
5,239 |
|||||
Other charges (income), net | (9,320) |
(3,106) |
|||||
Adjusted operating profit |
|
(b) |
30.4 |
|
28.5 |
||
Note: |
|||||||
(b) Adjusted operating profit increased |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||
(amounts in thousands) | ||||
(unaudited) | ||||
Cash and cash equivalents |
|
|
||
Accounts receivable, net | 709,321 |
647,335 |
||
Inventories | 441,694 |
414,543 |
||
Other current assets and prepaid expenses | 128,108 |
108,916 |
||
Total current assets | 1,375,089 |
1,269,358 |
||
Property, plant and equipment, net | 778,600 |
799,365 |
||
966,224 |
956,072 |
|||
Other non-current assets | 372,482 |
302,003 |
||
Total assets |
|
|
||
Short-term borrowings and maturities of long-term debt |
|
|
||
Trade accounts payable | 252,538 |
272,911 |
||
Accrued and other current liabilities | 789,139 |
772,493 |
||
Total current liabilities | 1,147,731 |
1,146,538 |
||
Long-term debt | 1,908,480 |
1,580,808 |
||
Other non-current liabilities | 411,391 |
428,031 |
||
Total liabilities | 3,467,602 |
3,155,377 |
||
Shareholders’ equity | 24,793 |
171,421 |
||
Total liabilities and shareholders’ equity |
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(amounts in thousands) | ||||||||
(unaudited) | ||||||||
Three months ended |
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Twelve months ended |
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2022 |
|
2021 |
|
2022 |
|
2021 |
||
Cash flow from operating activities: | ||||||||
Net earnings |
|
|
|
|
||||
Adjustments to reconcile net earnings to | ||||||||
net cash provided by operating activities: | ||||||||
Depreciation | 11,783 |
11,542 |
46,784 |
44,982 |
||||
Amortization | 16,542 |
16,934 |
66,239 |
63,075 |
||||
Deferred tax benefit | 31,398 |
6,635 |
26,517 |
563 |
||||
Share-based compensation | 5,730 |
5,702 |
19,661 |
19,595 |
||||
Increase in acquisition contingent consideration | - |
6,849 |
- |
6,849 |
||||
Other | - |
381 |
- |
381 |
||||
Increase (decrease) in cash resulting from changes in | ||||||||
operating assets and liabilities | (27,644) |
(37,808) |
(172,636) |
4,395 |
||||
Net cash provided by operating activities | 303,643 |
241,106 |
859,067 |
908,825 |
||||
Cash flows from investing activities: | ||||||||
Proceeds from sale of property, plant and equipment | 163 |
253 |
399 |
3,652 |
||||
Purchase of property, plant and equipment | (32,028) |
(37,784) |
(121,241) |
(107,580) |
||||
Proceeds from government funding (a) | 1,000 |
- |
29,670 |
- |
||||
Acquisitions | (12,363) |
(27,475) |
(37,951) |
(220,862) |
||||
Other investing activities | (6,809) |
2,123 |
(10,272) |
10,682 |
||||
Net cash used in investing activities | (50,037) |
(62,883) |
(139,395) |
(314,108) |
||||
Cash flows from financing activities: | ||||||||
Proceeds from borrowings | 786,195 |
789,198 |
2,307,256 |
2,427,519 |
||||
Repayments of borrowings | (810,354) |
(786,369) |
(1,947,398) |
(2,035,546) |
||||
Proceeds from exercise of stock options | 13,756 |
5,549 |
33,216 |
20,463 |
||||
Repurchases of common stock | (274,999) |
(272,500) |
(1,099,998) |
(999,998) |
||||
Acquisition contingent consideration payment | - |
- |
(7,912) |
- |
||||
Other financing activities | (31) |
(123) |
(1,203) |
(2,987) |
||||
Net cash used in financing activities | (285,433) |
(264,245) |
(716,039) |
(590,549) |
||||
Effect of exchange rate changes on cash and cash equivalents | 5,657 |
914 |
(6,231) |
142 |
||||
Net increase (decrease) in cash and cash equivalents | (26,170) |
(85,108) |
(2,598) |
4,310 |
||||
Cash and cash equivalents: | ||||||||
Beginning of period | 122,136 |
183,672 |
98,564 |
94,254 |
||||
End of period |
|
|
|
|
||||
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO ADJUSTED FREE CASH FLOW | ||||||||
Net cash provided by operating activities |
|
|
|
|
||||
Payments in respect of restructuring activities | 1,449 |
2,607 |
7,965 |
10,029 |
||||
Proceeds from sale of property, plant and equipment | 164 |
253 |
399 |
3,652 |
||||
Purchase of property, plant and equipment, net (a) | (32,474) |
(37,784) |
(93,131) |
(107,580) |
||||
Acquisition payments (b) | 72 |
462 |
2,678 |
2,706 |
||||
Transition tax payment | - |
- |
4,289 |
4,288 |
||||
Adjusted free cash flow |
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|
|
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Notes: | |
(a) |
In |
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(b) |
Includes |
OTHER OPERATING STATISTICS | |||||||||||||||||
SALES GROWTH BY DESTINATION | |||||||||||||||||
(unaudited) | |||||||||||||||||
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Total |
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Three Months Ended |
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( |
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Twelve Months Ended |
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Local Currency Sales Growth |
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Three Months Ended |
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Twelve Months Ended |
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RECONCILIATION OF DILUTED EPS AS REPORTED TO ADJUSTED DILUTED EPS |
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(unaudited) |
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Three months ended |
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Twelve months ended |
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2022 |
|
2021 |
|
% Growth |
|
2022 |
|
2021 |
|
% Growth |
|||||||
EPS as reported, diluted |
|
|
|
|
19 |
% |
|
|
|
|
17 |
% |
|||||
Purchased intangible amortization, net of tax | 0.21 |
|
(a) |
0.21 |
|
(a) |
0.87 |
|
(a) |
0.70 |
|
(a) |
|||||
Restructuring charges, net of tax | 0.06 |
|
(b) |
0.09 |
|
(b) |
0.34 |
|
(b) |
0.18 |
|
(b) |
|||||
Acquisition costs, net of tax | 0.01 |
|
(c) |
0.26 |
|
(c) |
0.03 |
(c) |
0.35 |
(c) |
|||||||
Income tax expense | (0.04 |
) |
(d) |
0.03 |
(d) |
- |
|
- |
|
||||||||
Adjusted EPS, diluted |
|
|
|
|
15 |
% |
|
|
|
|
17 |
% |
Notes: | ||||||||||||
(a) |
Represents the EPS impact of purchased intangibles amortization of |
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(b) |
Represents the EPS impact of restructuring charges of |
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(c) |
Represents the EPS impact of a |
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(d) |
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 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230209005495/en/
Head of Investor Relations
Direct: 614-438-4794
adam.uhlman@mt.com
Source:
FAQ
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