Mettler-Toledo International Inc. (NYSE: MTD) today announced first quarter results for 2024. Provided below are the highlights:
- Reported and local currency sales were flat compared with the prior year and benefited 6% from recovering previously announced delayed shipments from the fourth quarter of 2023.
- Net earnings per diluted share as reported (EPS) were $8.24, compared with $8.47 in the prior-year period. Adjusted EPS was $8.89, an increase of 2% over the prior-year amount of $8.69. Adjusted EPS is a non-GAAP measure, and a reconciliation to EPS is included on the last page of the attached schedules.
First Quarter Results
Patrick Kaltenbach, President and Chief Executive Officer, stated, “Our first quarter results were much better than expected, although we continued to face reduced market demand, especially in China, versus the prior year. We also substantially recovered our previously disclosed delayed product shipments from the fourth quarter of 2023, slightly better than forecast. Strong execution of our productivity and cost savings initiatives offset significant foreign exchange headwinds and resulted in modest Adjusted EPS growth in the quarter.”
GAAP Results
EPS in the quarter was $8.24, compared with the prior-year amount of $8.47.
Compared with the prior year, total reported sales were flat at $925.9 million. By region, reported sales increased 8% in Europe and 3% in the Americas and declined 12% in Asia/Rest of World. Earnings before taxes amounted to $220.5 million, compared with $226.6 million in the prior year.
Non-GAAP Results
Adjusted EPS was $8.89, an increase of 2% over the prior-year amount of $8.69.
Compared with the prior year, total sales in local currency were flat and benefited by 6% from recovering delayed shipments from the fourth quarter of 2023. By region, local currency sales increased 6% in Europe and 3% in the Americas and declined 8% in Asia/Rest of World. Excluding the benefit of delayed fourth quarter 2023 shipments, local currency sales decreased 5% in Europe, 1% in the Americas, and 12% in Asia/Rest of World. Adjusted Operating Profit amounted to $267.3 million, compared to the prior-year amount of $266.5 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
Management cautions that market conditions are uncertain and could change quickly. Based on today's assessment, management anticipates local currency sales for the second quarter of 2024 will decline approximately 4%, and Adjusted EPS is forecast to be $8.90 to $9.05, a decline of 11% to 13%. Included in the second quarter guidance is an estimated 2% headwind to Adjusted EPS growth due to adverse currency.
For the full year, management anticipates local currency sales in 2024 will increase approximately 2%, and Adjusted EPS is forecast to be in the range of $39.90 to $40.40, representing growth of approximately 5% to 6%. Included in the full year guidance is an estimated 2% headwind to Adjusted EPS growth due to adverse currency. This compares with previous local currency sales growth guidance of approximately 1% to 2% and Adjusted EPS guidance of $39.60 to $40.30.
The Company does not provide GAAP financial measures on a forward-looking basis because we are unable to predict with reasonable certainty and without unreasonable effort the timing and amount of future restructuring and other non-recurring items.
Conclusion
Kaltenbach concluded, “We expect soft market conditions in the second quarter of 2024, particularly in China. We remain focused on the diligent execution of our growth strategies, while continuing to drive innovation and further strengthen our Company for the future. Our product portfolio is in excellent shape with many successful recent product introductions, and enhancements to our best-in-class corporate programs such as Spinnaker and SternDrive position us very well for future growth.”
Other Matters
The Company will host a conference call to discuss its quarterly results tomorrow morning (Friday, May 10) at 8:30 a.m. Eastern Time. To listen to a live webcast or replay of the call, visit the investor relations page on the Company’s website at investor.mt.com. The presentation referenced on 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.
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, inflation, ongoing developments related to Ukraine, and the Israel-Hamas war. 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, planned research and development efforts and product introductions, adequacy of facilities, access to and the costs of raw materials, shipping and supplier costs, gross margins, customer demand, our competitive position, pricing, capital expenditures, cash flow, tax-related matters, the impact of foreign currencies, compliance with laws, effects of acquisitions, and the impact of inflation, ongoing developments related to Ukraine, and the Israel-Hamas war on our business.
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 inflation, ongoing developments related to Ukraine, and the Israel-Hamas war. See in particular “Factors Affecting Our Future Operating Results” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”
| METTLER-TOLEDO INTERNATIONAL INC. | |||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||
| (amounts in thousands except share data) | |||||||||||||
| (unaudited) | |||||||||||||
Three months ended |
|
|
|
Three months ended |
|
|
|||||||
March 31, 2024 |
|
% of sales |
|
March 31, 2023 |
|
% of sales |
|||||||
| Net sales | $ |
925,949 |
|
(a) |
100.0 |
|
$ |
928,738 |
|
100.0 |
|
||
| Cost of sales |
|
377,816 |
|
|
40.8 |
|
|
382,172 |
|
41.1 |
|
||
| Gross profit |
|
548,133 |
|
|
59.2 |
|
|
546,566 |
|
58.9 |
|
||
|
|
|
|
|
|||||||||
| Research and development |
|
46,415 |
|
|
5.0 |
|
|
45,477 |
|
4.9 |
|
||
| Selling, general and administrative |
|
234,390 |
|
|
25.3 |
|
|
234,638 |
|
25.3 |
|
||
| Amortization |
|
18,228 |
|
|
2.0 |
|
|
17,779 |
|
1.9 |
|
||
| Interest expense |
|
19,232 |
|
|
2.1 |
|
|
18,184 |
|
2.0 |
|
||
| Restructuring charges |
|
9,664 |
|
|
1.0 |
|
|
4,274 |
|
0.4 |
|
||
| Other charges (income), net |
|
(343 |
) |
|
(0.0 |
) |
|
(396 |
) |
(0.0 |
) |
||
| Earnings before taxes |
|
220,547 |
|
|
23.8 |
|
|
226,610 |
|
24.4 |
|
||
|
|
|
|
|
|||||||||
| Provision for taxes |
|
43,038 |
|
|
4.6 |
|
|
38,184 |
|
4.1 |
|
||
| Net earnings | $ |
177,509 |
|
|
19.2 |
|
$ |
188,426 |
|
20.3 |
|
||
|
|
|
|
|
|||||||||
| Basic earnings per common share: |
|
|
|
|
|
||||||||
| Net earnings | $ |
8.28 |
|
|
|
$ |
8.53 |
|
|
||||
| Weighted average number of common shares |
|
21,437,673 |
|
|
|
|
22,083,456 |
|
|
||||
|
|
|
|
|
|||||||||
| Diluted earnings per common share: |
|
|
|
|
|
||||||||
| Net earnings | $ |
8.24 |
|
|
|
$ |
8.47 |
|
|
||||
| Weighted average number of common and common equivalent shares |
|
21,543,313 |
|
|
|
|
22,253,435 |
|
|
||||
|
|
|
|
|
|||||||||
| Note: |
|
|
|
|
|
||||||||
(a) Local currency sales were flat compared to the same period in 2023. |
|||||||||||||
|
|
|
|
|
|||||||||
| RECONCILIATION OF EARNINGS BEFORE TAXES TO ADJUSTED OPERATING PROFIT | |||||||||||||
|
|
|
|
|
|||||||||
Three months ended |
|
|
|
Three months ended |
|
|
|||||||
March 31, 2024 |
|
% of sales |
|
March 31, 2023 |
|
% of sales |
|||||||
|
|
|
|
|
|||||||||
| Earnings before taxes | $ |
220,547 |
|
|
|
$ |
226,610 |
|
|
||||
| Amortization |
|
18,228 |
|
|
|
|
17,779 |
|
|
||||
| Interest expense |
|
19,232 |
|
|
|
|
18,184 |
|
|
||||
| Restructuring charges |
|
9,664 |
|
|
|
|
4,274 |
|
|
||||
| Other charges (income), net |
|
(343 |
) |
|
|
|
(396 |
) |
|
||||
| Adjusted operating profit | $ |
267,328 |
|
(b) |
28.9 |
|
$ |
266,451 |
|
28.7 |
|
||
| Note: | |||||||||||||
(b) Adjusted operating profit was flat as compared to the same period in 2023. |
|||||||||||||
METTLER-TOLEDO INTERNATIONAL INC. |
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
(amounts in thousands) |
||||||||
(unaudited) |
||||||||
| March 31, 2024 | December 31, 2023 | |||||||
| Cash and cash equivalents | $ |
70,191 |
|
|
$ |
69,807 |
|
|
| Accounts receivable, net |
|
650,333 |
|
|
|
663,893 |
|
|
| Inventories |
|
373,670 |
|
|
|
385,865 |
|
|
| Other current assets and prepaid expenses |
|
116,920 |
|
|
|
110,638 |
|
|
| Total current assets |
|
1,211,114 |
|
|
|
1,230,203 |
|
|
|
|
|
||||||
| Property, plant and equipment, net |
|
773,495 |
|
|
|
803,374 |
|
|
| Goodwill and other intangibles assets, net |
|
940,191 |
|
|
|
955,537 |
|
|
| Other non-current assets |
|
358,317 |
|
|
|
366,441 |
|
|
| Total assets | $ |
3,283,117 |
|
|
$ |
3,355,555 |
|
|
|
|
|
||||||
| Short-term borrowings and maturities of long-term debt | $ |
183,173 |
|
|
$ |
192,219 |
|
|
| Trade accounts payable |
|
189,449 |
|
|
|
210,411 |
|
|
| Accrued and other current liabilities |
|
759,310 |
|
|
|
778,452 |
|
|
| Total current liabilities |
|
1,131,932 |
|
|
|
1,181,082 |
|
|
|
|
|
||||||
| Long-term debt |
|
1,903,574 |
|
|
|
1,888,620 |
|
|
| Other non-current liabilities |
|
406,328 |
|
|
|
435,791 |
|
|
| Total liabilities |
|
3,441,834 |
|
|
|
3,505,493 |
|
|
|
|
|
||||||
| Shareholders’ equity |
|
(158,717 |
) |
|
|
(149,938 |
) |
|
| Total liabilities and shareholders’ equity | $ |
3,283,117 |
|
|
$ |
3,355,555 |
|
|
| METTLER-TOLEDO INTERNATIONAL INC. | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| (amounts in thousands) | ||||||||
| (unaudited) | ||||||||
| Three months ended | ||||||||
| March 31, | ||||||||
|
2024 |
|
|
2023 |
|
|||
| Cash flow from operating activities: | ||||||||
| Net earnings | $ |
177,509 |
|
$ |
188,426 |
|
||
| Adjustments to reconcile net earnings to net cash provided by operating activities: | ||||||||
| Depreciation |
|
12,522 |
|
|
12,023 |
|
||
| Amortization |
|
18,228 |
|
|
17,779 |
|
||
| Deferred tax provision (benefit) |
|
(2,063 |
) |
|
602 |
|
||
| Share-based compensation |
|
4,722 |
|
|
4,027 |
|
||
| Decrease in cash resulting from changes in operating assets and liabilities |
|
(20,931 |
) |
|
(69,595 |
) |
||
| Net cash provided by operating activities |
|
189,987 |
|
|
153,262 |
|
||
| Cash flows from investing activities: | ||||||||
Purchase of property, plant and equipment |
|
(17,391 |
) |
|
(23,196 |
) |
||
Acquisitions |
|
(1,000 |
) |
|
(613 |
) |
||
Other investing activities |
|
9,456 |
|
|
1,423 |
|
||
Net cash used in investing activities |
|
(8,935 |
) |
|
(22,386 |
) |
||
| Cash flows from financing activities: | ||||||||
| Proceeds from borrowings |
|
449,863 |
|
|
605,018 |
|
||
| Repayments of borrowings |
|
(418,280 |
) |
|
(503,516 |
) |
||
| Proceeds from exercise of stock options |
|
1,831 |
|
|
11,473 |
|
||
| Repurchases of common stock |
|
(212,499 |
) |
|
(249,999 |
) |
||
| Other financing activities |
|
- |
|
|
(611 |
) |
||
| Net cash used in financing activities |
|
(179,085 |
) |
|
(137,635 |
) |
||
| Effect of exchange rate changes on cash and cash equivalents |
|
(1,583 |
) |
|
(122 |
) |
||
| Net increase in cash and cash equivalents |
|
384 |
|
|
(6,881 |
) |
||
| Cash and cash equivalents: | ||||||||
| Beginning of period |
|
69,807 |
|
|
95,966 |
|
||
| End of period | $ |
70,191 |
|
$ |
89,085 |
|
||
| RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO ADJUSTED FREE CASH FLOW | ||||||||
| Net cash provided by operating activities | $ |
189,987 |
|
$ |
153,262 |
|
||
| Payments in respect of restructuring activities |
|
9,714 |
|
|
1,983 |
|
||
| Purchase of property, plant and equipment, net (a) |
|
(17,391 |
) |
|
(19,908 |
) |
||
| Adjusted free cash flow | $ |
182,310 |
|
$ |
135,337 |
|
||
| Note: | |||||
| (a) | In September 2021, the Company entered into an agreement with the U.S. Department of Defense to increase the domestic production capacity of pipette tips and enhance manufacturing automation and logistics. The Company received funding of $35.8 million in prior years, which offset capital expenditures. During the three months ended March 31, 2023 the related purchase of property, plant and equipment of $3.3 million are excluded from Adjusted free cash flow. | ||||
METTLER-TOLEDO INTERNATIONAL INC. |
|||||||
OTHER OPERATING STATISTICS
|
|||||||
| SALES GROWTH BY DESTINATION | |||||||
| (unaudited) | |||||||
Americas |
|
Europe |
|
Asia/RoW |
|
Total |
|
|
|
|
|
|
|
|
|
| U.S. Dollar Sales Growth |
|
|
|
|
|
|
|
| Three Months Ended March 31, 2024 | 3% |
|
8% |
|
(12%) |
|
0% |
|
|
|
|
|
|
|
|
| Local Currency Sales Growth |
|
|
|
|
|
|
|
| Three Months Ended March 31, 2024 | 3% |
|
6% |
|
(8%) |
|
0% |
| Note: | ||||||||||||
| (a) | The Company estimates net sales benefited by 6% from recovering previously delayed shipments from the fourth quarter of 2023. By geographic destination, net sales benefited approximately 4% in the Americas, 11% in Europe and 4% in Asia/Rest of World. | |||||||||||
| RECONCILIATION OF DILUTED EPS AS REPORTED TO ADJUSTED DILUTED EPS | |||||||||
| (unaudited) | |||||||||
| Three months ended | |||||||||
| March 31, | |||||||||
2024 |
2023 |
% Growth |
|||||||
| EPS as reported, diluted | $ |
8.24 |
$ |
8.47 |
|
-3 |
% |
||
| Purchased intangible amortization, net of tax |
|
0.24 |
(a) |
|
0.23 |
|
(a) |
||
| Restructuring charges, net of tax |
|
0.36 |
(b) |
|
0.16 |
|
(b) |
||
| Income tax expense |
|
0.05 |
(c) |
|
(0.17 |
) |
(c) |
||
| Adjusted EPS, diluted | $ |
8.89 |
$ |
8.69 |
|
2 |
% |
||
| Notes: | ||||||||||||
| (a) | Represents the EPS impact of purchased intangibles amortization of $6.6 million ($5.1 million after tax) for both three month periods ended March 31, 2024 and 2023. | |||||||||||
| (b) | Represents the EPS impact of restructuring charges of $9.7 million ($7.8 million after tax) and $4.3 million ($3.5 million after tax) for the three months ended March 31, 2024 and 2023, respectively, which primarily include employee related costs. | |||||||||||
| (c) | Represents the EPS impact of the difference between our quarterly and estimated annual tax rate before non-recurring discrete items during the three months ended March 31, 2024 and 2023 due to the timing of excess tax benefits associated with stock option exercises. | |||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20240509135311/en/
Contacts
Adam Uhlman
Head of Investor Relations
METTLER TOLEDO
Direct: 614-438-4794
adam.uhlman@mt.com
