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   Strategies & Market TrendsSpeculating in Takeover Targets


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To: richardred who wrote (4430)5/5/2017 10:31:23 AM
From: richardred
1 Recommendation   of 6102
 
MTD is killing it. IMO that's why HBIO needs a parent.

Mettler-Toledo International Inc. Reports First Quarter 2017 Results- - Excellent Sales Growth - -
- - Very Strong Margin Expansion and EPS Growth - -
COLUMBUS, Ohio, May 4, 2017 /PRNewswire/ -- Mettler-Toledo International Inc. (NYSE: MTD) today announced first quarter results for 2017. Provided below are the highlights:

  • Sales in local currency increased 12% in the quarter compared with the prior year. Reported sales increased 10% as currency reduced sales growth by 2% in the quarter.
  • Net earnings per diluted share as reported (EPS) were $3.48, compared with $2.40 in the prior-year period. Adjusted EPS was $3.34, an increase of 36% over the prior-year amount of $2.46. Adjusted EPS is a non-GAAP measure and we have included a reconciliation to EPS on the last page of the attached schedules.
  • First Quarter Results

    Olivier Filliol, President and Chief Executive Officer, stated, "Sales growth in the quarter was excellent with broad-based strength across all regions. Our productivity and margin initiatives continue to yield tangible results driving strong margin expansion and very good growth in EPS. Finally, cash flow generation in the quarter was quite strong."

    EPS in the quarter was $3.48, compared with the prior-year amount of $2.40. Adjusted EPS was $3.34, an increase of 36% over the prior-year amount of $2.46.

    Sales were $594.6 million, a 12% increase in local currency sales, compared with $539.7 million in the prior-year quarter. Reported sales increased 10% as currency reduced sales growth by 2% in the quarter. As compared to the prior year, local currency sales increased 14% in the Americas, 13% in Europe and 9% in Asia / Rest of World. Adjusted operating income amounted to $127.3 million, a 25% increase from the prior-year amount of $102.0 million. Adjusted operating income is a non-GAAP measure, and a reconciliation to earnings before taxes is 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 2017 will be approximately 7%. This sales growth is expected to result in Adjusted EPS in the range of $16.95 to $17.15, an increase of 15% to 16%. This compares to previous guidance of Adjusted EPS in the range of $16.55 to $16.75.

    For the second quarter 2017, local currency sales growth is expected to be in the range of 8% to 9% and Adjusted EPS in the range of $3.85 to $3.90, an increase of 20% to 21%.

    While the Company has provided an outlook for Adjusted EPS, it has not provided an outlook for EPS as it would require an estimate of 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, "We have a strong start to the year as we capitalize on favorable market conditions and continue to execute well. Our growth initiatives have good momentum and include our Field Turbo investments, Spinnaker sales and marketing initiatives and new product launches. We also continue to make good progress with our margin and productivity initiatives. While current market conditions are positive, we will face more challenging comparisons as the year progresses. With the promising start to the year, we are optimistic that we will deliver a strong performance in 2017."

    Other Matters

    The Company will host a conference call to discuss its quarterly results today (Thursday, May 4) 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 8-K to which this release has been furnished as an exhibit. All of the forward-looking statements are qualified in their entirety by reference to the factors discussed under the captions "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.




    METTLER-TOLEDO INTERNATIONAL INC.

    CONSOLIDATED STATEMENTS OF OPERATIONS

    (amounts in thousands except share data)

    (unaudited)

























    Three months ended









    Three months ended










    March 31, 2017


    % of sales



    March 31, 2016


    % of sales






















    Net sales



    $594,567


    (a)


    100.0





    $539,674




    100.0



    Cost of sales



    251,667




    42.3





    239,767




    44.4



    Gross profit



    342,900




    57.7





    299,907




    55.6























    Research and development



    31,392




    5.3





    28,973




    5.4



    Selling, general and administrative



    184,172




    31.0





    168,921




    31.3



    Amortization



    10,045




    1.7





    8,424




    1.6



    Interest expense



    7,741




    1.3





    6,580




    1.2



    Restructuring charges



    1,432




    0.2





    880




    0.2



    Other charges (income), net



    (5,730)


    (b)


    (0.9)





    (284)




    (0.1)



    Earnings before taxes



    113,848




    19.1





    86,413




    16.0























    Provision for taxes



    21,382




    3.5





    20,739




    3.8



    Net earnings



    $92,466




    15.6





    $65,674




    12.2























    Basic earnings per common share:



















    Net earnings



    $3.57









    $2.44







    Weighted average number of common shares



    25,932,112









    26,931,293



























    Diluted earnings per common share:



















    Net earnings



    $3.48









    $2.40







    Weighted average number of common



    26,586,061









    27,421,019







    and common equivalent shares







































    Note:



















    (a)

    Local currency sales increased 12% as compared to the same period in 2016.



























    RECONCILIATION OF EARNINGS BEFORE TAXES TO ADJUSTED OPERATING INCOME

























    Three months ended









    Three months ended










    March 31, 2017


    % of sales



    March 31, 2016


    % of sales






















    Earnings before taxes



    $113,848









    $86,413







    Amortization



    10,045









    8,424







    Interest expense



    7,741









    6,580







    Restructuring charges



    1,432









    880







    Other charges (income), net



    (5,730)


    (b)







    (284)







    Adjusted operating income



    $127,336


    (c)


    21.4





    $102,013




    18.9























    Note:



















    (b)

    Other charges (income), net includes a one-time gain of $3.4 million for the three months ended March 31, 2017 relating to the sale of a facility in Switzerland in connection with our initiative to consolidate certain Swiss operations into a new facility.


    (c)

    Adjusted operating income increased 25% as compared to the same period in 2016.










    METTLER-TOLEDO INTERNATIONAL INC.

    CONDENSED CONSOLIDATED BALANCE SHEETS

    (amounts in thousands)

    (unaudited)























    March 31, 2017



    December 31, 2016











    Cash and cash equivalents



    $164,893





    $158,674


    Accounts receivable, net



    439,413





    454,988


    Inventories



    242,375





    222,047


    Other current assets and prepaid expenses



    66,184





    61,075


    Total current assets



    912,865





    896,784












    Property, plant and equipment, net



    572,058





    563,707


    Goodwill and other intangibles assets, net



    644,128





    643,433


    Other non-current assets



    74,713





    62,853


    Total assets



    $2,203,764





    $2,166,777












    Short-term borrowings and maturities of long-term debt



    $19,476





    $18,974


    Trade accounts payable



    137,827





    146,593


    Accrued and other current liabilities



    403,859





    421,948


    Total current liabilities



    561,162





    587,515












    Long-term debt



    944,211





    875,056


    Other non-current liabilities



    258,539





    269,263


    Total liabilities



    1,763,912





    1,731,834












    Shareholders' equity



    439,852





    434,943


    Total liabilities and shareholders' equity



    $2,203,764





    $2,166,777
















    METTLER-TOLEDO INTERNATIONAL INC.

    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

    (amounts in thousands)

    (unaudited)













    Three months ended






    March 31,






    2017


    2016










    Cash flow from operating activities:







    Net earnings



    $92,466


    $65,674


    Adjustments to reconcile net earnings to
    net cash provided by operating activities:













    Depreciation



    7,966


    8,122


    Amortization



    10,045


    8,424


    Deferred tax benefit



    (1,470)


    (3,304)


    Gain on facility sale



    (3,394)


    -


    Other



    3,812


    3,579


    Decrease in cash resulting from changes in







    operating assets and liabilities



    (41,826)


    (40,990)


    Net cash provided by operating activities



    67,599


    41,505










    Cash flows from investing activities:







    Proceeds from sale of property, plant and equipment(a)



    10,003


    135


    Purchase of property, plant and equipment



    (21,015)


    (14,348)


    Acquisitions



    -


    (4,329)


    Net hedging settlements on intercompany loans



    312


    2,128


    Net cash used in investing activities



    (10,700)


    (16,414)










    Cash flows from financing activities:







    Proceeds from borrowings



    472,732


    229,413


    Repayments of borrowings



    (409,881)


    (124,467)


    Proceeds from exercise of stock options



    8,201


    5,909


    Repurchases of common stock



    (124,997)


    (125,000)


    Other financing activities



    -


    (125)


    Net cash used in financing activities



    (53,945)


    (14,270)










    Effect of exchange rate changes on cash and cash equivalents



    3,265


    887










    Net increase in cash and cash equivalents



    6,219


    11,708










    Cash and cash equivalents:







    Beginning of period



    $158,674


    98,887


    End of period



    $164,893


    $110,595


















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









    Net cash provided by operating activities



    $67,599


    $35,700


    Payments in respect of restructuring activities



    2,578


    1,841


    Proceeds from sale of property, plant and equipment



    10,003


    135


    Purchase of property, plant and equipment



    (21,015)


    (14,348)


    Free cash flow



    $59,165


    $23,328










    (a)

    Proceeds from sale of property, plant and equipment includes $9.9 million relating to the sale of a facility in Switzerland in connection with our initiative to consolidate certain Swiss operations into a new facility.






    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 March 31, 2017



    9%


    14%

    7%


    10%
















    Local Currency Sales Growth














    Three Months Ended March 31, 2017



    13%


    14%

    9%


    12%












































    RECONCILIATION OF DILUTED EPS AS REPORTED TO ADJUSTED DILUTED EPS

    (unaudited)





















    Three months ended








    March 31,








    2017



    2016


    %

    Growth
















    EPS as reported, diluted





    $3.48



    $2.40


    45%
















    Restructuring charges, net of tax





    0.04

    (a)


    0.02

    (a)




    Purchased intangible amortization, net of tax





    0.06

    (b)


    0.04

    (b)




    Income tax expense





    (0.14)

    (c)


    -





    Gain on facility sale





    (0.10)

    (d)


    -



















    Adjusted EPS, diluted





    $3.34



    $2.46


    36%
















    Notes:













    (a)

    Represents the EPS impact of restructuring charges of $1.4 million ($1.1 million after tax) and $0.9 million ($0.7 million after tax) for both the three months ended March 31, 2017 and 2016, respectively, which primarily include employee related costs.

    (b)

    Represents the EPS impact of purchased intangibles amortization, net of tax, of $1.5 million and $1.1 million for the three month periods ended March 31, 2017 and 2016, respectively.

    (c)

    Represents the EPS impact of the difference between our reported tax rate of 19% during the three months ending March 31, 2017 and our estimated annual income tax rate of 22% pertaining to excess tax benefits associated with stock option exercises.

    (d)

    Represents the EPS impact of a one-time gain of $3.4 million ($2.7 million after tax) for the three months ended March 31, 2017 relating to the sale of a facility in Switzerland in connection with our initiative to consolidate certain Swiss operations into a new facility.






    To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/mettler-toledo-international-inc-reports-first-quarter-2017-results-300451942.html

    SOURCE Mettler-Toledo International Inc.


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    To: richardred who wrote (4435)5/8/2017 8:35:33 AM
    From: richardred
       of 6102
     
    Straight Path Communications up another 41 points pre-market. A rumored knock out bid blow by Verizion or is there more to go?

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    To: richardred who wrote (4444)5/8/2017 9:10:12 AM
    From: richardred
       of 6102
     
    Merger Monday- Coach to buy Kate-Spade -Sinclair to buy Tribune. Low premiums on both of those deals.

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    From: richardred5/8/2017 12:29:26 PM
       of 6102
     
    Added to MNTX on the give back of Friday's spike upward. IMO the possible sale of ASVI is a near term catalyst. RE-CC A ASVI sale would bring back MNTX debt levels to historical levels. IMO A economic infrastructure package has more than a good chance of passing. There is generally a lag to fruition. I think this is good for MNTX's building backlog and gives time for margins to improve. I think it is this infrastructure anticipation, aside from lower dealer inventory contributing to the backlog. The anticipation is making me wait to sell. Looking for a slow good profit.


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    To: richardred who wrote (4440)5/8/2017 1:39:21 PM
    From: richardred
       of 6102
     
    Interesting development today. PRXL- Parexel exploring a sale. INCR competes with PRXL. INCR Earning are out soon and could disappoint once again. Watching for a possible opportunity.

    BRIEF-Parexel International is working with investment bankers to explore sale- WSJ, citing sources

    reuters.com

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    To: richardred who wrote (4447)5/10/2017 8:26:16 AM
    From: richardred
       of 6102
     
    A BULLSEYE TODAY - #1 on this years SITT list goes down today!


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    To: The Ox who wrote (4390)5/10/2017 8:46:45 AM
    From: richardred
       of 6102
     
    I will be holding to see if a possible bid by some else might emerge for INCR itself. This instead of a merger. IMO chances are good. Today's transaction should flush out any possible bidders.

    Message 30973486

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    To: richardred who wrote (4448)5/10/2017 8:59:31 AM
    From: richardred
       of 6102
     
    I guess I should have said. The dart board was hit, but no true bulls-eye. If LAB or someone else big really wants INCR. IMO Now would be that moment.

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    To: richardred who wrote (4450)5/10/2017 9:32:46 AM
    From: The Ox
       of 6102
     
    Simply at a glance, INCR's gain in gross profit last year was almost completely eaten up by increased SG+A. Looking at the chart, they've seen a very nice appreciation since the IPO a few years back. I suppose that if the right company comes along, they'll be an attractive candidate but I would be somewhat concerned about how much over the current stock price someone might be willing to offer?

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    To: The Ox who wrote (4451)5/10/2017 9:52:55 AM
    From: richardred
       of 6102
     
    I wouldn't expect a possible hypothetical offer to be at a high premium. Just guessing 15-20% from market 52 week high. That's not high. Speaking of SG & A. It looks to be a driving force in this merger. The cost synergies of this merger look very attractive. Especially a year out. It also gives the private equity firms a safe and cost effective way to bring their lab company public without an IPO.

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