MTD 8-K
Mettler Toledo International Inc/ (MTD)
8-K
2020-07-30
For: 2020-07-30
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Added on
April 12, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): | |
(Exact name of registrant as specified in its charter)
File No. | |||||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | |||
and Im Langacher, P.O. Box MT-100 CH Greifensee, Switzerland | and 8606 | |||
(Address of principal executive offices) | (Zip Code) | |||
Registrant’s telephone number, including area code: 1-614 -438-4511 and +41-44-944-22-11
(Former name or former address, if changed since last report.) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | ||
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | ||
Securities registered pursuant to Section 12(b) of the Act:
Title of each class | Trading Symbol | Name of each exchange on which registered |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2). Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13 (a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition
The following information is furnished pursuant to Item 2.02, “Results of Operations and Financial Condition.” The information furnished in this Form 8-K and the Exhibit attached hereto shall not be treated as filed for purposes of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.
On July 30, 2020 Mettler-Toledo International Inc. (“Mettler-Toledo”) issued a press release (the “Release”) setting forth its financial results for the three and six months ended June 30, 2020. A copy of the Release is furnished hereto as Exhibit 99.1 to this report.
Non-GAAP Financial Measures
Mettler-Toledo supplements its U.S. GAAP results with non-GAAP financial measures. The principal non-GAAP financial measures Mettler-Toledo uses are Adjusted Earnings per Share, Adjusted Operating Profit, Adjusted Free Cash Flow, and Local Currency Sales Growth.
Adjusted Earnings per Share
Mettler-Toledo defines Adjusted Earnings per Share as diluted earnings per common share excluding certain non-recurring discrete tax items, amortization of purchased intangible assets, net of tax, restructuring charges, net of tax and certain other one-time charges, net of tax. The most directly comparable U.S. GAAP financial measure is diluted earnings per common share.
Mettler-Toledo believes that Adjusted Earnings per Share is important supplemental information for investors. Mettler-Toledo uses this measure because it excludes certain non-recurring discrete tax items, amortization of purchased intangibles, net of tax, restructuring charges, net of tax and certain other one-time charges, net of tax, which management believes are not directly related to current and ongoing operations thereby providing investors with information that helps to compare ongoing operating performance.
Adjusted Earnings per Share is used in addition to and in conjunction with results presented in accordance with U.S. GAAP. Adjusted Earnings per Share is not intended to represent diluted earnings per common share under U.S. GAAP and should not be considered as an alternative to diluted earnings per common share as an indicator of Mettler-Toledo’s performance because of the following limitations.
Limitations of Mettler-Toledo’s non-GAAP measure, Adjusted Earnings per Share
Mettler-Toledo’s non-GAAP measure, Adjusted Earnings per Share, has certain material limitations as follows:
It does not include certain non-recurring discrete tax items, amortization expense of purchased intangibles, net of tax, restructuring charges, net of tax and certain other one-time charges, net of tax. Because non-recurring discrete tax items, amortization of purchased intangibles, restructuring charges and certain other one-time charges are components of diluted earnings per share under U.S. GAAP, any measure that excludes non-recurring discrete tax items, amortization of purchased intangibles, restructuring charges and certain other one-time charges, has material limitations.
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Adjusted Operating Profit
Mettler-Toledo defines Adjusted Operating Profit as gross profit less research and development and selling, general and administrative expenses before amortization, interest, restructuring charges and other charges (income), net and taxes. The most directly comparable U.S. GAAP financial measure is earnings before taxes.
Mettler-Toledo believes that Adjusted Operating Profit is important supplemental information for investors. Adjusted Operating Profit is used internally as the principal profit measurement by its segments in their reporting to management. Mettler-Toledo uses this measure because it excludes amortization, interest, restructuring charges and other charges (income), net and taxes, which are not allocated to the segments.
On a consolidated basis, Mettler-Toledo also believes Adjusted Operating Profit is an important supplemental method of measuring profitability. It is used internally by senior management for measuring profitability and setting performance targets for managers, and has historically been used as one of the means of publicly providing guidance on possible future results. Mettler-Toledo also believes that Adjusted Operating Profit is an important performance measure because it provides a measure of comparability to other companies with different capital or legal structures, which accordingly may be subject to disparate interest rates and effective tax rates, and to companies which may incur different amortization expenses or impairment charges related to intangible assets.
Adjusted Operating Profit is used in addition to and in conjunction with results presented in accordance with U.S. GAAP. Adjusted Operating Profit is not intended to represent operating income under U.S. GAAP and should not be considered as an alternative to earnings before taxes as an indicator of Mettler-Toledo’s performance because of the following limitations.
Limitations of Mettler-Toledo’s non-GAAP measure, Adjusted Operating Profit
Mettler-Toledo’s non-GAAP measure, Adjusted Operating Profit, has certain material limitations as follows:
• | It excludes amortization expense. Because this item is recurring, any measure that excludes amortization expense has material limitations. | |
• | It does not include interest expense. Because Mettler-Toledo has borrowed money to finance some of its operations, interest is a necessary and ongoing part of its costs and has assisted Mettler-Toledo in generating revenue. Therefore any measure that excludes interest expense has material limitations. | |
• | It excludes restructuring charges. Because restructuring charges are a component of operating income under U.S. GAAP, any measure that excludes restructuring charges, has material limitations. | |
• | It excludes other charges (income), net. Because other charges (income), net is a component of operating income under U.S. GAAP, any measure that excludes other charges (income), net, has material limitations. | |
Adjusted Free Cash Flow
Mettler-Toledo defines Adjusted Free Cash Flow as net cash provided by operating activities including proceeds from the sale of property, plant and equipment, less capital expenditures, and before restructuring, acquisition cost, and Transition Tax payments. The most directly comparable U.S. GAAP financial measure is net cash provided by operating activities.
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Mettler-Toledo believes Adjusted Free Cash Flow is important supplemental information for investors. It is used internally by senior management for measuring operating cash flow generation and setting performance targets for managers, and has historically been used as one of the means of providing guidance on possible future cash flows.
Adjusted Free Cash Flow is used in addition to and in conjunction with results presented in accordance with U.S. GAAP. Adjusted Free Cash Flow is not intended to represent net cash provided by operating activities recorded under U.S. GAAP and should not be considered as an alternative to net cash provided by operating activities as an indicator of Mettler-Toledo’s performance because of the following limitations.
Limitations of Mettler-Toledo’s non-GAAP measure, Adjusted Free Cash Flow
Mettler-Toledo’s non-GAAP measure, Adjusted Free Cash Flow, has certain material limitations as follows:
• | It includes proceeds from the sale of property, plant and equipment and purchases of property, plant and equipment, which are not considered to be components of net cash provided by operating activities under U.S. GAAP. Therefore any measure that includes proceeds from the sale of property, plant and equipment and purchases of property, plant and equipment has material limitations. | |
• | It excludes restructuring, acquisition cost, and Transition Tax payments, which are considered to be components of net cash provided by operating activities under U.S. GAAP. Therefore any measure that excludes these items has material limitations. | |
Local Currency Sales Growth
Mettler-Toledo defines Local Currency Sales Growth as sales growth excluding the effect of currency exchange rate fluctuations that result from translating activity outside of the United States into U.S. dollars. The most directly comparable U.S. GAAP financial measure is U.S. dollar sales growth.
Mettler-Toledo believes that Local Currency Sales Growth is important supplemental information for investors. Mettler-Toledo believes local currency information provides a helpful assessment of business performance and a useful measure of results between periods.
Local Currency Sales Growth is used in addition to and in conjunction with results presented in accordance with U.S. GAAP. Local Currency Sales Growth is not intended to represent U.S. dollar sales growth under U.S. GAAP and should not be considered as an alternative to U.S. dollar sales growth as an indicator of Mettler-Toledo’s performance because of the following limitations.
Limitations of Mettler-Toledo’s non-GAAP measure, Local Currency Sales Growth
Mettler-Toledo’s non-GAAP measure, Local Currency Sales Growth, has certain material limitations as follows:
It does not include the effect of currency exchange rate fluctuations that result from translating activity outside of the United States into U.S. dollars. Because the effect of changes in foreign currency exchange rates is a component of U.S. dollar sales growth under U.S. GAAP, any measure that excludes the effect of changes in foreign currency exchange rates, has material limitations.
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Adjusted Earnings per Share, Adjusted Operating Profit, Adjusted Free Cash Flow and Local Currency Sales Growth should not be relied upon to the exclusion of U.S. GAAP financial measures, but reflect additional measures of comparability and means of viewing aspects of Mettler-Toledo’s operations that, when viewed together with its U.S. GAAP results and the accompanying reconciliations to net earnings, net cash provided by operating activities and diluted earnings per share, provide a more complete understanding of factors and trends affecting its business.
Because Adjusted Earnings per Share, Adjusted Operating Profit, Adjusted Free Cash Flow and Local Currency Sales Growth are not standardized, it may not be possible to compare with other companies’ non-GAAP financial measures having the same or similar names. We strongly encourage investors to review our financial statements and publicly filed reports in their entirety and not to rely on any single financial measure.
The Release provides a reconciliation of Adjusted Earnings per Share, Adjusted Operating Profit and Adjusted Free Cash Flow to the most comparable financial measures recorded under U.S. GAAP. The Release also presents Local Currency Sales Growth in conjunction with its most comparable financial measure recorded under U.S. GAAP.
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Item 9.01 Financial Statements and Exhibits
Exhibit No. | Description | |||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document).* * Submitted electronically with this Report in accordance with the provision of Regulation S-T. | |||
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
METTLER-TOLEDO INTERNATIONAL INC. | ||||
Dated: | July 30, 2020 | By: | /s/ Shawn P. Vadala | |
Shawn P. Vadala | ||||
Chief Financial Officer | ||||
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FOR IMMEDIATE RELEASE | Exhibit 99.1 | |
METTLER-TOLEDO INTERNATIONAL INC. REPORTS
SECOND QUARTER 2020 RESULTS
COLUMBUS, Ohio, USA - July 30, 2020 - Mettler-Toledo International Inc. (NYSE: MTD) today announced second quarter results for 2020. Provided below are the highlights:
• | Reported sales decreased 6% compared with the prior year. In local currency, sales decreased 4% in the quarter as currency reduced sales by 2%. |
• | Net earnings per diluted share as reported (EPS) were $5.22, compared with $5.06 in the prior-year period. Adjusted EPS was $5.29, an increase of 3% over the prior-year amount of $5.16. Adjusted EPS is a non-GAAP measure, and a reconciliation to EPS is included on the last page of the attached schedules. |
Second Quarter Results
Olivier Filliol, President and Chief Executive Officer, stated, "Demand in our end markets was negatively impacted by COVID-19; however, our sales decline was more modest than expected. Good growth in China and the resiliency and diversity of our Laboratory and Industrial businesses contributed to our better-than-expected performance. We are pleased with positive growth in Adjusted EPS and strong cash flow generation in the quarter given the challenges of the current environment."
GAAP Results
EPS in the quarter was $5.22, compared with the prior-year amount of $5.06.
Compared with the prior year, total reported sales decreased 6% to $690.7 million. By region, reported sales decreased 8% in the Americas, 6% in Europe and 2% in Asia/Rest of World. Earnings before taxes amounted to $155.3 million, compared with $155.2 million in the prior year.
Non-GAAP Results
Adjusted EPS was $5.29, an increase of 3% over the prior-year amount of $5.16.
Compared with the prior year, total sales in local currency decreased 4% as currency reduced reported sales growth by 2%. By region, local currency sales decreased 7% in the Americas and 5% in Europe and increased 1% in Asia/Rest of World. Adjusted Operating Profit amounted to $176.6 million, a 1% decline from the prior-year amount of $177.7 million.
Adjusted EPS and Adjusted Operating Profit are non-GAAP measures. Reconciliations to the most comparable GAAP measures are provided in the attached schedules.
Six Month Results
GAAP Results
EPS was $9.25, compared with the prior-year amount of $9.48.
Compared with the prior year, total reported sales decreased 5% to $1.340 billion. By region, reported sales decreased 3% in the Americas, 7% in Europe and 6% in Asia/Rest of World. Earnings before taxes amounted to $273.8 million, compared with $280.9 million in the prior year.
Non-GAAP Results
Adjusted EPS was $9.28 as compared to the prior-year amount of $9.26.
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Compared with the prior year, total sales in local currency decreased 3% as currency reduced reported sales by 2%. By region, local currency sales decreased 2% in the Americas, 5% in Europe and 3% in Asia/Rest of World. Adjusted Operating Profit amounted to $317.9 million, a 2% decrease from the prior-year amount of $325.6 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 given the significant uncertainty surrounding COVID-19 and ensuing impact to the global economic environment. While the Company is providing an estimate for sales growth and Adjusted EPS for 2020, management cautions that market dynamics and impacts related to COVID-19 are fluid and changes to the business environment can happen quickly. The estimates for the third quarter and full year 2020 include significant uncertainty and management acknowledges that market conditions are subject to change.
For the third quarter 2020, based on management's current estimate of market conditions, the Company estimates that local currency sales will decline approximately -1% to -3%, and Adjusted EPS is forecasted to be in the range of $5.80 to $6.00.
For the full year 2020, the Company estimates that local currency sales will decline approximately -1% to -3%, and Adjusted EPS is forecasted to be in the range of $22.70 to $23.20.
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
Filliol concluded, "We quickly adapted our operating model to the challenges of COVID-19 with priority placed on the safety and well-being of our employees while continuing to provide leading-edge instruments and services to our customers. Overall demand in our end markets continues to be negatively impacted by COVID-19. While the majority of our sales are to essential end markets including life sciences and food manufacturing, we also benefit from significant diversification in our product offering. We believe we are continuing to gain share despite the environment and will be strongly positioned to capture growth as our end markets recover."
Other Matters
The Company will host a conference call to discuss its quarterly results today (Thursday, July 30) 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
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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, 2019 and other reports filed with the SEC from time to time.
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METTLER-TOLEDO INTERNATIONAL INC. CONSOLIDATED STATEMENTS OF OPERATIONS (amounts in thousands except share data) (unaudited) | |||||||||||||
Three months ended | Three months ended | ||||||||||||
June 30, 2020 | % of sales | June 30, 2019 | % of sales | ||||||||||
Net sales | $ | 690,673 | (a) | 100.0 | $ | 731,366 | 100.0 | ||||||
Cost of sales | 292,703 | 42.4 | 311,828 | 42.6 | |||||||||
Gross profit | 397,970 | 57.6 | 419,538 | 57.4 | |||||||||
Research and development | 31,193 | 4.5 | 36,582 | 5.0 | |||||||||
Selling, general and administrative | 190,134 | 27.5 | 205,215 | 28.1 | |||||||||
Amortization | 13,889 | 2.0 | 12,326 | 1.7 | |||||||||
Interest expense | 9,582 | 1.4 | 8,882 | 1.2 | |||||||||
Restructuring charges | 860 | 0.1 | 2,891 | 0.4 | |||||||||
Other charges (income), net | (2,943 | ) | (0.4) | (1,574 | ) | (0.2) | |||||||
Earnings before taxes | 155,255 | 22.5 | 155,216 | 21.2 | |||||||||
Provision for taxes | 28,693 | 4.2 | 28,056 | 3.8 | |||||||||
Net earnings | $ | 126,562 | 18.3 | $ | 127,160 | 17.4 | |||||||
Basic earnings per common share: | |||||||||||||
Net earnings | $ | 5.29 | $ | 5.15 | |||||||||
Weighted average number of common shares | 23,940,278 | 24,698,032 | |||||||||||
Diluted earnings per common share: | |||||||||||||
Net earnings | $ | 5.22 | $ | 5.06 | |||||||||
Weighted average number of common and common equivalent shares | 24,228,989 | 25,118,352 | |||||||||||
Note: | |||||||||||||
(a) | Local currency sales decreased 4% as compared to the same period in 2019. | ||||||||||||
RECONCILIATION OF EARNINGS BEFORE TAXES TO ADJUSTED OPERATING PROFIT | |||||||||||||
Three months ended | Three months ended | ||||||||||||
June 30, 2020 | % of sales | June 30, 2019 | % of sales | ||||||||||
Earnings before taxes | $ | 155,255 | $ | 155,216 | |||||||||
Amortization | 13,889 | 12,326 | |||||||||||
Interest expense | 9,582 | 8,882 | |||||||||||
Restructuring charges | 860 | 2,891 | |||||||||||
Other charges (income), net | (2,943 | ) | (1,574 | ) | |||||||||
Adjusted operating profit | $ | 176,643 | (b) | 25.6 | $ | 177,741 | 24.3 | ||||||
Note: | |||||||||||||
(b) | Adjusted operating profit decreased 1% as compared to the same period in 2019. | ||||||||||||
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METTLER-TOLEDO INTERNATIONAL INC. CONSOLIDATED STATEMENTS OF OPERATIONS (amounts in thousands except share data) (unaudited) | |||||||||||||
Six months ended | Six months ended | ||||||||||||
June 30, 2020 | % of sales | June 30, 2019 | % of sales | ||||||||||
Net sales | $ | 1,339,835 | (a) | 100.0 | $ | 1,410,818 | 100.0 | ||||||
Cost of sales | 567,456 | 42.4 | 602,961 | 42.7 | |||||||||
Gross profit | 772,379 | 57.6 | 807,857 | 57.3 | |||||||||
Research and development | 65,580 | 4.9 | 72,635 | 5.1 | |||||||||
Selling, general and administrative | 388,878 | 29.0 | 409,640 | 29.0 | |||||||||
Amortization | 27,887 | 2.1 | 24,548 | 1.7 | |||||||||
Interest expense | 19,801 | 1.5 | 17,976 | 1.4 | |||||||||
Restructuring charges | 2,765 | 0.2 | 4,414 | 0.3 | |||||||||
Other charges (income), net | (6,286 | ) | (0.5) | (2,248) | (0.1) | ||||||||
Earnings before taxes | 273,754 | 20.4 | 280,892 | 19.9 | |||||||||
Provision for taxes | 49,077 | 3.6 | 41,927 | 3.0 | |||||||||
Net earnings | $ | 224,677 | 16.8 | $ | 238,965 | 16.9 | |||||||
Basic earnings per common share: | |||||||||||||
Net earnings | $ | 9.37 | $ | 9.65 | |||||||||
Weighted average number of common shares | 23,984,055 | 24,774,262 | |||||||||||
Diluted earnings per common share: | |||||||||||||
Net earnings | $ | 9.25 | $ | 9.48 | |||||||||
Weighted average number of common and common equivalent shares | 24,291,321 | 25,217,359 | |||||||||||
Note: | |||||||||||||
(a) | Local currency sales decreased 3% as compared to the same period in 2019. | ||||||||||||
RECONCILIATION OF EARNINGS BEFORE TAXES TO ADJUSTED OPERATING PROFIT | |||||||||||||
Six months ended | Six months ended | ||||||||||||
June 30, 2020 | % of sales | June 30, 2019 | % of sales | ||||||||||
Earnings before taxes | $ | 273,754 | $ | 280,892 | |||||||||
Amortization | 27,887 | 24,548 | |||||||||||
Interest expense | 19,801 | 17,976 | |||||||||||
Restructuring charges | 2,765 | 4,414 | |||||||||||
Other charges (income), net | (6,286 | ) | (2,248 | ) | |||||||||
Adjusted operating profit | $ | 317,921 | (b) | 23.7 | $ | 325,582 | 23.1 | ||||||
Note: | |||||||||||||
(b) | Adjusted operating profit decreased 2% as compared to the same period in 2019. | ||||||||||||
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METTLER-TOLEDO INTERNATIONAL INC. CONDENSED CONSOLIDATED BALANCE SHEETS (amounts in thousands) (unaudited) | ||||||||
June 30, 2020 | December 31, 2019 | |||||||
Cash and cash equivalents | $ | 127,277 | $ | 207,785 | ||||
Accounts receivable, net | 490,429 | 566,256 | ||||||
Inventories | 299,746 | 274,285 | ||||||
Other current assets and prepaid expenses | 72,356 | 61,321 | ||||||
Total current assets | 989,808 | 1,109,647 | ||||||
Property, plant and equipment, net | 743,393 | 748,657 | ||||||
Goodwill and other intangible assets, net | 739,755 | 742,221 | ||||||
Other non-current assets | 206,691 | 188,796 | ||||||
Total assets | $ | 2,679,647 | $ | 2,789,321 | ||||
Short-term borrowings and maturities of long-term debt | $ | 53,585 | $ | 55,868 | ||||
Trade accounts payable | 155,901 | 185,592 | ||||||
Accrued and other current liabilities | 493,343 | 513,052 | ||||||
Total current liabilities | 702,829 | 754,512 | ||||||
Long-term debt | 1,146,590 | 1,235,350 | ||||||
Other non-current liabilities | 380,135 | 378,679 | ||||||
Total liabilities | 2,229,554 | 2,368,541 | ||||||
Shareholders’ equity | 450,093 | 420,780 | ||||||
Total liabilities and shareholders’ equity | $ | 2,679,647 | $ | 2,789,321 | ||||
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METTLER-TOLEDO INTERNATIONAL INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (amounts in thousands) (unaudited) | |||||||||||||||
Three months ended | Six months ended | ||||||||||||||
June 30, | June 30, | ||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Cash flow from operating activities: | |||||||||||||||
Net earnings | $ | 126,562 | $ | 127,160 | $ | 224,677 | $ | 238,965 | |||||||
Adjustments to reconcile net earnings to | |||||||||||||||
net cash provided by operating activities: | |||||||||||||||
Depreciation | 10,194 | 9,623 | 20,327 | 19,390 | |||||||||||
Amortization | 13,889 | 12,326 | 27,887 | 24,548 | |||||||||||
Deferred tax (benefit) expense | (852 | ) | 58 | (4,570 | ) | (14,881 | ) | ||||||||
Other | 4,423 | 4,338 | 8,818 | 8,820 | |||||||||||
Increase (decrease) in cash resulting from changes in | |||||||||||||||
operating assets and liabilities | 29,021 | (26,435 | ) | (28,387 | ) | (50,977 | ) | ||||||||
Net cash provided by operating activities | 183,237 | 127,070 | 248,752 | 225,865 | |||||||||||
Cash flows from investing activities: | |||||||||||||||
Proceeds from sale of property, plant and equipment | 1,994 | 1,144 | 2,025 | 1,216 | |||||||||||
Purchase of property, plant and equipment | (18,223 | ) | (22,295 | ) | (37,089 | ) | (44,699 | ) | |||||||
Acquisitions | (632 | ) | (504 | ) | (6,242 | ) | (504 | ) | |||||||
Net hedging settlements on intercompany loans | 727 | (6,028 | ) | (9,281 | ) | (1,226 | ) | ||||||||
Net cash used in investing activities | (16,134 | ) | (27,683 | ) | (50,587 | ) | (45,213 | ) | |||||||
Cash flows from financing activities: | |||||||||||||||
Proceeds from borrowings | 243,830 | 336,123 | 1,076,098 | 638,830 | |||||||||||
Repayments of borrowings | (616,806 | ) | (261,083 | ) | (1,168,125 | ) | (532,729 | ) | |||||||
Proceeds from exercise of stock options | 10,615 | 8,767 | 17,750 | 37,757 | |||||||||||
Repurchases of common stock | — | (186,249 | ) | (200,000 | ) | (372,500 | ) | ||||||||
Acquisition contingent consideration payment | — | — | — | (10,000 | ) | ||||||||||
Other financing activities | — | 1,753 | (800 | ) | 1,753 | ||||||||||
Net cash used in financing activities | (362,361 | ) | (100,689 | ) | (275,077 | ) | (236,889 | ) | |||||||
Effect of exchange rate changes on cash and cash equivalents | (1,050 | ) | (739 | ) | (3,596 | ) | 2,566 | ||||||||
Net decrease in cash and cash equivalents | (196,308 | ) | (2,041 | ) | (80,508 | ) | (53,671 | ) | |||||||
Cash and cash equivalents: | |||||||||||||||
Beginning of period | 323,585 | 126,480 | 207,785 | 178,110 | |||||||||||
End of period | $ | 127,277 | $ | 124,439 | $ | 127,277 | $ | 124,439 | |||||||
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO ADJUSTED FREE CASH FLOW | |||||||||||||||
Net cash provided by operating activities | $ | 183,237 | $ | 127,070 | $ | 248,752 | $ | 225,865 | |||||||
Payments in respect of restructuring activities | 3,001 | 3,154 | 4,627 | 6,846 | |||||||||||
Transition tax payment | — | 4,289 | — | 4,289 | |||||||||||
Proceeds from sale of property, plant and equipment | 1,994 | 1,144 | 2,025 | 1,216 | |||||||||||
Purchase pf property, plant and equipment | (18,223 | ) | (22,295 | ) | (37,089 | ) | (44,699 | ) | |||||||
Adjusted free cash flow | $ | 170,009 | $ | 113,362 | $ | 218,315 | $ | 193,517 | |||||||
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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, 2020 | (6)% | (8)% | (2)% | (6)% | ||||||||||||||||
Six Months Ended June 30, 2020 | (7)% | (3)% | (6)% | (5)% | ||||||||||||||||
Local Currency Sales Growth (Decrease) | ||||||||||||||||||||
Three Months Ended June 30, 2020 | (5)% | (7)% | 1% | (4)% | ||||||||||||||||
Six Months Ended June 30, 2020 | (5)% | (2)% | (3)% | (3)% | ||||||||||||||||
RECONCILIATION OF DILUTED EPS AS REPORTED TO ADJUSTED DILUTED EPS | ||||||||||||||||||||
(unaudited) | ||||||||||||||||||||
Three months ended | Six months ended | |||||||||||||||||||
June 30, | June 30, | |||||||||||||||||||
2020 | 2019 | % Growth | 2020 | 2019 | % Growth | |||||||||||||||
EPS as reported, diluted | $ | 5.22 | $ | 5.06 | 3% | $ | 9.25 | $ | 9.48 | (2)% | ||||||||||
Restructuring charges, net of tax | 0.03 | (a) | 0.09 | (a) | 0.09 | (a) | 0.14 | (a) | ||||||||||||
Purchased intangible amortization, net of tax | 0.12 | (b) | 0.10 | (b) | 0.23 | (b) | 0.21 | (b) | ||||||||||||
Income tax expense | (0.08 | ) | (c) | (0.09 | ) | (c) | (0.29 | ) | (c) | (0.57 | ) | (c) | ||||||||
Adjusted EPS, diluted | $ | 5.29 | $ | 5.16 | 3% | $ | 9.28 | $ | 9.26 | —% | ||||||||||
Notes: | ||||||||||||||||||||
(a) | Represents the EPS impact of restructuring charges of $0.9 million ($0.7 million after tax) and $2.9 million ($2.3 million after tax) for the three months ended June 30, 2020 and 2019, and $2.8 million ($2.2 million after tax) and $4.4 million ($3.5 million after tax) for the six months ended June 30, 2020 and 2019, respectively, which primarily include employee related costs. | |||||||||||||||||||
(b) | Represents the EPS impact of purchased intangibles amortization, net of tax of $2.8 million and $2.6 million for the three months ended June 30, 2020 and 2019, and of $5.6 million and $5.2 million for the six months ended June 30, 2020 and 2019, respectively. | |||||||||||||||||||
(c) | Represents the EPS impact of the difference between our quarterly and estimated annual tax rate before non-recurring discrete items during the three and six months ended June 30, 2020 and 2019 due to the timing of excess tax benefits associated with stock option exercises. | |||||||||||||||||||
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