Attachment: 8-K

Exhibit
FOR IMMEDIATE RELEASE
 
Exhibit 99.1

METTLER-TOLEDO INTERNATIONAL INC. REPORTS
SECOND QUARTER 2019 RESULTS


COLUMBUS, Ohio, USA -August 1, 2019 - Mettler-Toledo International Inc. (NYSE: MTD) today announced second quarter results for 2019. Provided below are the highlights:

•
Reported sales increased 1% compared with the prior year. In local currency, sales increased 5% in the quarter as currency reduced sales growth by 4%.

•
Net earnings per diluted share as reported (EPS) were $5.06, compared with $4.31 in the prior-year period. Adjusted EPS was $5.16, an increase of 11% over the prior-year amount of $4.65. Adjusted EPS is a non-GAAP measure, and we have included a reconciliation to EPS on the last page of the attached schedules.

Second Quarter Results

Olivier Filliol, President and Chief Executive Officer, stated, "Sales growth was solid in the quarter with excellent growth in our Laboratory product lines and good growth in our Core Industrial business. Sales growth in the Americas and China was particularly strong while sales growth in Europe was impacted by strong prior-year comparisons. With the benefit of our margin initiatives, and despite significant challenges from the adverse impact of currency and tariff costs, we achieved strong growth in earnings in the quarter."

GAAP Results
EPS in the quarter was $5.06, compared with the prior-year amount of $4.31.

Compared with the prior year, total reported sales increased 1% to $731.4 million. By region, reported sales increased 7% in the Americas and 2% in Asia/Rest of World. Reported sales in Europe declined by 6%. Earnings before taxes amounted to $155.2 million, compared with $143.6 million in the prior year.

Non-GAAP Results
Adjusted EPS was $5.16, an increase of 11% over the prior-year amount of $4.65.
 
Compared with the prior year, total sales in local currency increased 5% as currency reduced reported sales growth by 4%. By region, local currency sales increased 7% in the Americas and 7% in Asia/Rest of World. Local currency sales declined 1% in Europe. Adjusted Operating Profit amounted to $177.7 million, a 5% increase from the prior-year amount of $169.3 million.

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

Six Month Results

GAAP Results
EPS was $9.48, compared with the prior-year amount of $7.88.

Compared with the prior year, total reported sales increased 2% to $1.411 billion. By region, reported sales increased 5% in the Americas and 3% in Asia/Rest of World. Reported sales in Europe declined 2%. Earnings before taxes amounted to $280.9 million, compared with $261.0 million in the prior year.

Non-GAAP Results
Adjusted EPS was $9.26, an increase of 11% over the prior-year amount of $8.38.
 

-1-

Compared with the prior year, total sales in local currency increased 6% as currency reduced reported sales growth by 4%. By region, local currency sales increased 5% in the Americas, 4% in Europe and 8% in Asia/Rest of World. Adjusted Operating Profit amounted to $325.6 million, a 5% increase from the prior-year amount of $308.8 million.

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

Outlook

The Company said that based on its assessment of market conditions today, management anticipates local currency sales growth in 2019 will be approximately 5%. This sales growth is expected to result in Adjusted EPS in the range of $22.60 to $22.75, a growth rate of 11% to 12%. This compares with previous Adjusted EPS guidance of $22.55 to $22.75.

Based on today's assessment of market conditions, management anticipates that local currency sales growth in the third quarter 2019 will be in the range of 4% to 5%, and Adjusted EPS is forecasted to be in the range of $5.65 to $5.75, an increase of 10% 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. 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, "With the exception of our Food Retail business, demand in our markets is favorable and our growth initiatives continue to generate tangible results. We assume market conditions will remain unchanged and our outlook for the third quarter is positive. As we look to the later part of the year, we acknowledge there is more uncertainty due to macroeconomic data. We remain focused on our growth strategy and believe we can continue to gain market share regardless of the economy. Based on market conditions today, we believe we can deliver strong results in 2019."

Other Matters
The Company will host a conference call to discuss its quarterly results today (Thursday, August 1) 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 10-K. All of the forward-looking statements are qualified in their entirety by reference to the factors discussed under the caption “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.

-2-

METTLER-TOLEDO INTERNATIONAL INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(amounts in thousands except share data)
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended
 
 
 
Three months ended
 
 
 
 
 
June 30, 2019
 
% of sales
 
June 30, 2018
 
% of sales
 
 
 
 
 
 
 
 
 
 
Net sales
$
731,366

(a)
100.0

 
$
721,996

 
100.0

Cost of sales
311,828

 
42.6

 
309,371

 
42.8

Gross profit
419,538

 
57.4

 
412,625

 
57.2

 
 
 
 
 
 
 
 
 
 
Research and development
36,582

 
5.0

 
35,315

 
4.9

Selling, general and administrative
205,215

 
28.1

 
208,024

 
28.8

Amortization
12,326

 
1.7

 
11,970

 
1.7

Interest expense
8,882

 
1.2

 
8,309

 
1.2

Restructuring charges
2,891

 
0.4

 
7,321

 
1.0

Other charges (income), net
(1,574
)
 
(0.2
)
 
(1,916
)
 
(0.3
)
Earnings before taxes
155,216

 
21.2

 
143,602

 
19.9

 
 
 
 
 
 
 
 
 
 
Provision for taxes
28,056

 
3.8

 
32,134

 
4.5

Net earnings
$
127,160

 
17.4

 
$
111,468

 
15.4

 
 
 
 
 
 
 
 
 
 
Basic earnings per common share:
 
 
 
 
 
 
 
Net earnings
$
5.15

 
 
 
$
4.41

 
 
Weighted average number of common shares
24,698,032

 
 
 
25,299,414

 
 
 
 
 
 
 
 
 
 
 
 
Diluted earnings per common share:
 
 
 
 
 
 
 
Net earnings
$
5.06

 
 
 
$
4.31

 
 
Weighted average number of common and common equivalent shares
25,118,352

 
 
 
25,867,383

 
 
 
 
 
 
 
 
 
 
 
 
Note:
 
 
 
 
 
 
 
 
(a)
Local currency sales increased 5% as compared to the same period in 2018.
 
 
 
 
 
 
 
 
 
 
 
 
RECONCILIATION OF EARNINGS BEFORE TAXES TO ADJUSTED OPERATING PROFIT
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended
 
 
 
Three months ended
 
 
 
 
 
June 30, 2019
 
% of sales
 
June 30, 2018
 
% of sales
 
 
 
 
 
 
 
 
 
 
Earnings before taxes
$
155,216

 
 
 
$
143,602

 
 
Amortization
12,326

 
 
 
11,970

 
 
Interest expense
8,882

 
 
 
8,309

 
 
Restructuring charges
2,891

 
 
 
7,321

 
 
Other charges (income), net
(1,574
)
 
 
 
(1,916
)
 
 
Adjusted operating profit
$
177,741

(b)
24.3

 
$
169,286

 
23.4

 
 
 
 
 
 
 
 
 
 
Note:
 
 
 
 
 
 
 
 
(b)
Adjusted operating profit increased 5% as compared to the same period in 2018.
 
 

-3-


METTLER-TOLEDO INTERNATIONAL INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(amounts in thousands except share data)
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
Six months ended
 
 
 
Six months ended
 
 
 
 
 
June 30, 2019
 
% of sales
 
June 30, 2018
 
% of sales
 
 
 
 
 
 
 
 
 
 
Net sales
$
1,410,818

(a)
100.0

 
$
1,382,817

 
100.0

Cost of sales
602,961

 
42.7

 
595,259

 
43.0

Gross profit
807,857

 
57.3

 
787,558

 
57.0

 
 
 
 
 
 
 
 
 
 
Research and development
72,635

 
5.1

 
70,028

 
5.1

Selling, general and administrative
409,640

 
29.0

 
408,698

 
29.6

Amortization
24,548

 
1.7

 
23,705

 
1.7

Interest expense
17,976

 
1.4

 
16,668

 
1.2

Restructuring charges
4,414

 
0.3

 
11,734

 
0.8

Other charges (income), net
(2,248
)
 
(0.1
)
 
(4,316
)
 
(0.3
)
Earnings before taxes
280,892

 
19.9

 
261,041

 
18.9

 
 
 
 
 
 
 
 
 
 
Provision for taxes
41,927

 
3.0

 
56,269

 
4.1

Net earnings
$
238,965

 
16.9

 
$
204,772

 
14.8

 
 
 
 
 
 
 
 
 
 
Basic earnings per common share:
 
 
 
 
 
 
 
Net earnings
$
9.65

 
 
 
$
8.07

 
 
Weighted average number of common shares
24,774,262

 
 
 
25,383,402

 
 
 
 
 
 
 
 
 
 
 
 
Diluted earnings per common share:
 
 
 
 
 
 
 
Net earnings
$
9.48

 
 
 
$
7.88

 
 
Weighted average number of common and common equivalent shares
25,217,359

 
 
 
25,979,508

 
 
 
 
 
 
 
 
 
 
 
 
Note:
 
 
 
 
 
 
 
 
(a)
Local currency sales increased 6% as compared to the same period in 2018.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RECONCILIATION OF EARNINGS BEFORE TAXES TO ADJUSTED OPERATING PROFIT
 
 
 
 
 
 
 
 
 
 
 
 
 
Six months ended
 
 
 
Six months ended
 
 
 
 
 
June 30, 2019
 
% of sales
 
June 30, 2018
 
% of sales
 
 
 
 
 
 
 
 
 
 
Earnings before taxes
$
280,892

 
 
 
$
261,041

 
 
Amortization
24,548

 
 
 
23,705

 
 
Interest expense
17,976

 
 
 
16,668

 
 
Restructuring charges
4,414

 
 
 
11,734

 
 
Other charges (income), net
(2,248
)
 
 
 
(4,316
)
 
 
Adjusted operating profit
$
325,582

(b)
23.1

 
$
308,832

 
22.3

 
 
 
 
 
 
 
 
 
 
Note:
 
 
 
 
 
 
 
 
(b)
Adjusted operating profit increased 5% as compared to the same period in 2018.
 
 

-4-

METTLER-TOLEDO INTERNATIONAL INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(amounts in thousands)
(unaudited)
 
 
 
 
 
 
 
June 30, 2019
 
December 31, 2018
 
 
 
 
 
Cash and cash equivalents
$
124,439

 
$
178,110

Accounts receivable, net
498,723

 
535,528

Inventories
286,347

 
268,821

Other current assets and prepaid expenses
71,937

 
63,401

Total current assets
981,446

 
1,045,860

 
 
 
 
 
Property, plant and equipment, net
728,007

 
717,526

Goodwill and other intangible assets, net
745,768

 
752,088

Other non-current assets
205,637

(a)
103,373

Total assets
$
2,660,858

 
$
2,618,847

 
 
 
 
 
Short-term borrowings and maturities of long-term debt
$
51,918

 
$
49,670

Trade accounts payable
160,584

 
196,641

Accrued and other current liabilities
494,749

(a)
488,123

Total current liabilities
707,251

 
734,434

 
 
 
 
 
Long-term debt
1,087,874

 
985,021

Other non-current liabilities
361,647

(a)
309,329

Total liabilities
2,156,772

 
2,028,784

 
 
 
 
 
Shareholders’ equity
504,086

 
590,063

Total liabilities and shareholders’ equity
$
2,660,858

 
$
2,618,847

 
 
 
 
 
(a)
Includes a lease right-of-use asset of $88.1 million, a short-term lease liability of $26.4 million and a long-term lease liability of $62.3 million in accordance with ASC 842 "Leases" that went into effect on January 1, 2019.













-5-

METTLER-TOLEDO INTERNATIONAL INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(amounts in thousands)
(unaudited)
 
 
 
 
 
 
 
 
 
Three months ended
 
Six months ended
 
June 30,
 
June 30,
 
2019
 
2018
 
2019
 
2018
 
 
 
 
 
 
 
 
Cash flow from operating activities:
 
 
 
 
 
 
 
Net earnings
$
127,160

 
$
111,468

 
$
238,965

 
$
204,772

 Adjustments to reconcile net earnings to
 
 
 
 
 
 
 
net cash provided by operating activities:
 
 
 
 
 
 
 
Depreciation
9,623

 
9,449

 
19,390

 
18,606

Amortization
12,326

 
11,970

 
24,548

 
23,705

Deferred tax expense (benefit)
58

 
(3,693
)
 
(14,881
)
 
(10,109
)
Other
4,286

 
3,951

 
8,790

 
7,036

Increase (decrease) in cash resulting from changes in
 
 
 
 
 
 
 
operating assets and liabilities
(26,383
)
 
7,050

 
(50,947
)
 
(27,251
)
Net cash provided by operating activities
127,070

 
140,195

 
225,865

 
216,759

Cash flows from investing activities:
 
 
 
 
 
 
 
Proceeds from sale of property, plant and equipment
1,144

 
23

 
1,216

 
4,530

Purchase of property, plant and equipment
(22,295
)
 
(31,812
)
 
(44,699
)
 
(61,586
)
Acquisitions
(504
)
 
-

 
(504
)
 
(500
)
Net hedging settlements on intercompany loans
(6,028
)
 
3,738

 
(1,226
)
 
7,042

Net cash used in investing activities
(27,683
)
 
(28,051
)
 
(45,213
)
 
(50,514
)
Cash flows from financing activities:
 
 
 
 
 
 
 
Proceeds from borrowings
336,123

 
266,668

 
638,830

 
603,180

Repayments of borrowings
(261,083
)
 
(171,410
)
 
(532,729
)
 
(502,524
)
Proceeds from exercise of stock options
8,767

 
4,291

 
37,757

 
9,960

Repurchases of common stock
(186,249
)
 
(118,749
)
 
(372,500
)
 
(237,499
)
Acquisition contingent consideration payment
—

 
—

 
(10,000
)
 
—

Other financing activities
1,753

 
(1,635
)
 
1,753

 
(1,635
)
Net cash used in financing activities
(100,689
)
 
(20,835
)
 
(236,889
)
 
(128,518
)
 
 
 
 
 
 
 
 
Effect of exchange rate changes on cash and cash equivalents
(739
)
 
(7,067
)
 
2,566

 
(3,224
)
 
 
 
 
 
 
 
 
Net (decrease) increase in cash and cash equivalents
(2,041
)
 
84,242

 
(53,671
)
 
34,503

 
 
 
 
 
 
 
 
Cash and cash equivalents:
 
 
 
 
 
 
 
    Beginning of period
126,480

 
98,948

 
178,110

 
148,687

    End of period
$
124,439

 
$
183,190

 
$
124,439

 
$
183,190

 
 
 
 
 
 
 
 
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO ADJUSTED FREE CASH FLOW
 
 
 
 
 
 
 
 
Net cash provided by operating activities
$
127,070

 
$
140,195

 
$
225,865

 
$
216,759

Payments in respect of restructuring activities
3,154

 
8,167

 
6,846

 
13,409

Transition tax payment
4,289

 
4,200

 
4,289

 
4,200

Proceeds from sale of property, plant and equipment
1,144

 
23

 
1,216

 
4,530

Purchase pf property, plant and equipment
(22,295
)
 
(31,812
)
 
(44,699
)
 
(61,586
)
Adjusted free cash flow
$
113,362

 
$
120,773

 
$
193,517

 
$
177,312

 
 
 
 
 
 
 
 

-6-

METTLER-TOLEDO INTERNATIONAL INC.
OTHER OPERATING STATISTICS
 
 
 
 
 
 
 
 
 
 
 
 
 
SALES GROWTH BY DESTINATION
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Europe
 
Americas
 
Asia/RoW
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Dollar Sales Growth (Decrease)
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended June 30, 2019
 
(6%)
 
7%
 
2%
 
1%
 
 
 
Six Months Ended June 30, 2019
 
(2%)
 
5%
 
3%
 
2%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Local Currency Sales Growth (Decrease)
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended June 30, 2019
 
(1%)
 
7%
 
7%
 
5%
 
 
 
Six Months Ended June 30, 2019
 
4%
 
5%
 
8%
 
6%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RECONCILIATION OF DILUTED EPS AS REPORTED TO ADJUSTED DILUTED EPS
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended
 
Six months ended
 
 
June 30,
 
June 30,
 
 
2019
 
2018
 
% Growth
 
2019
 
2018
 
% Growth
 
 
 
 
 
 
 
 
 
 
 
 
 
EPS as reported, diluted
$
5.06

 
$
4.31

 
17%
 
$
9.48

 
$
7.88

 
20%
 
 
 
 
 
 
 
 
 
 
 
 
 
Restructuring charges, net of tax
0.09

(a)
0.22

(a)
 
 
0.14

(a)
0.35

(a)
 
Purchased intangible amortization, net of tax
0.10

(b)
0.10

(b)
 
 
0.21

(b)
0.19

(b)
 
Income tax expense
(0.09
)
(c)
0.02

(c)
 
 
(0.57
)
(c)
(0.04
)
(c)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted EPS, diluted
$
5.16

 
$
4.65

 
11%
 
$
9.26

 
$
8.38

 
11%
 
 
 
 
 
 
 
 
 
 
 
 
 
Notes:
 
 
 
 
 
 
 
 
 
 
 
(a)
Represents the EPS impact of restructuring charges of $2.9 million ($2.3 million after tax) and $7.3 million ($5.7 million after tax) for the three months ended June 30, 2019 and 2018, and $4.4 million ($3.5 million after tax) and $11.7 million ($9.2 million after tax) for the six months ended June 30, 2019 and 2018, respectively, which primarily include employee related costs.
(b)
Represents the EPS impact of purchased intangibles amortization, net of tax, of $2.6 million and $2.5 million for the three months ended June 30, 2019 and 2018, and $5.2 million and $5.0 million for the six months ended June 30, 2019 and 2018, respectively.
(c)
Represents the EPS impact on our reported tax rate during the three and six months ending June 30, 2019 and 2018, respectively, due to excess tax benefits associated with stock option exercises.




-7-
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Attachment: XBRL TAXONOMY EXTENSION SCHEMA DOCUMENT

mtd-20190630_cal.xml
Attachment: XBRL TAXONOMY EXTENSION CALCULATION LINKBASE DOCUMENT

mtd-20190630_def.xml
Attachment: XBRL TAXONOMY EXTENSION DEFINITION LINKBASE DOCUMENT

mtd-20190630_lab.xml
Attachment: XBRL TAXONOMY EXTENSION LABEL LINKBASE DOCUMENT

mtd-20190630_pre.xml
Attachment: XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE DOCUMENT