Mettler-Toledo International 8K Reports Second Quarter 2024 Results | MTD 1 Aug 24


FOR IMMEDIATE RELEASE						Exhibit 99.1

METTLER-TOLEDO INTERNATIONAL INC. REPORTS

SECOND QUARTER 2024 RESULTS

COLUMBUS, Ohio, USA – August 1, 2024 – Mettler-Toledo International Inc. (NYSE: MTD) today announced second quarter results for 2024. Provided below are the highlights:

•Reported sales declined 4% compared with the prior year. In local currency, sales decreased 2% in the quarter as currency reduced sales growth by 2%.

•Net earnings per diluted share as reported (EPS) were $10.37, compared with $9.69 in the prior-year period. Adjusted EPS was $9.65, a decrease of 5% over the prior-year amount of $10.19. 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

Patrick Kaltenbach, President and Chief Executive Officer, stated, “Our team continued to execute very well in the second quarter and delivered good Laboratory sales growth in Europe and the Americas. As expected, market conditions in China remained weak. We continue to benefit from our productivity and margin initiatives, which helped mitigate the impact of foreign exchange headwinds and supported better-than-expected financial results.”

GAAP Results

EPS in the quarter was $10.37, compared with the prior-year amount of $9.69. EPS included a one-time non-cash tax benefit of $1.07 per share.

Compared with the prior year, total reported sales declined 4% to $946.8 million. By region, reported sales increased 5% in Europe and 2% in the Americas and declined 16% in Asia/Rest of World. Earnings before taxes amounted to $243.2 million, compared with $263.4 million in the prior year.

Non-GAAP Results

Adjusted EPS was $9.65, a decrease of 5% over the prior-year amount of $10.19.

Compared with the prior year, total sales in local currency declined 2% as currency reduced sales growth by 2%. By region, local currency sales increased 6% in Europe and 2% in the Americas and declined 12% in Asia/Rest of World. Adjusted Operating Profit amounted to $284.1 million, compared with the prior-year amount of $307.7 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 $18.60, compared with the prior-year amount of $18.15, and included the previously mentioned one-time non-cash tax benefit of $1.07 per share.

Compared with the prior year, total reported sales declined 2% to $1.873 billion. By region, reported sales increased 6% in Europe and 3% in the Americas and declined 14% in Asia/Rest of World. Earnings before taxes amounted to $463.7 million, compared with $490.0 million in the prior year.

Non-GAAP Results

Adjusted EPS was $18.53, a decrease of 2% over the prior-year amount of $18.82.

-1-

Compared with the prior year, total sales in local currency declined 1% as currency reduced sales growth by 1%. By region, local currency sales increased 6% in Europe and 2% in the Americas and declined 11% in Asia/Rest of World. Excluding the first quarter benefit from delayed fourth quarter 2023 shipments, year-to-date local currency sales declined 4%, including flat local currency sales in Europe and the Americas and a 12% decline in Asia/Rest of World. Adjusted Operating Profit amounted to $551.4 million, compared with the prior-year amount of $574.2 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 third quarter of 2024 will increase approximately 1%, and Adjusted EPS is forecast to be $9.90 to $10.05, representing growth of 1% to 3%. Included in the third quarter guidance is an estimated 1% 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 $40.20 to $40.50, representing growth of approximately 6% to 8%. 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 2% and Adjusted EPS guidance of $39.90 to $40.40.

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, “Market conditions globally have remained soft, especially in China. However, we expect our local currency sales to return to growth in the second half of the year primarily due to easier comparisons, as well as execution of our Spinnaker sales and marketing program and leveraging our innovative product portfolio. We remain focused on continuing to strengthen our Company for the future and believe we are in an excellent position to continue to gain market share and deliver future growth.”

Other Matters

The Company will host a conference call to discuss its quarterly results tomorrow morning (Friday, August 2) at 7:30 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

-2-

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.”

-3-

METTLER-TOLEDO INTERNATIONAL INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(amounts in thousands except share data)

(unaudited)



		Three months ended				Three months ended
		June 30, 2024			% of sales	June 30, 2023		% of sales

Net sales		$	946,750	(a)	100.0	$	982,117	100.0
Cost of sales		381,082			40.3	398,574		40.6
Gross profit		565,668			59.7	583,543		59.4

Research and development		45,771			4.8	47,245		4.8
Selling, general and administrative		235,796			24.9	228,594		23.3
Amortization		18,178			1.9	18,042		1.8
Interest expense		18,950			2.0	19,249		2.0
Restructuring charges		5,329			0.6	8,021		0.8
Other charges (income), net		(1,533)			(0.2)	(1,011)		(0.1)
Earnings before taxes		243,177			25.7	263,403		26.8

Provision for taxes		21,363			2.3	49,476		5.0
Net earnings		$	221,814		23.4	$	213,927	21.8

Basic earnings per common share:
Net earnings		$	10.42			$	9.75
Weighted average number of common shares		21,279,006				21,944,645

Diluted earnings per common share:
Net earnings		$	10.37			$	9.69
Weighted average number of common and common equivalent shares		21,392,550				22,080,602

Note:
(a)	Local currency sales decreased 2% as compared to the same period in 2023.

RECONCILIATION OF EARNINGS BEFORE TAXES TO ADJUSTED OPERATING PROFIT

		Three months ended				Three months ended
		June 30, 2024			% of sales	June 30, 2023		% of sales

Earnings before taxes		$	243,177			$	263,403
Amortization		18,178				18,042
Interest expense		18,950				19,249
Restructuring charges		5,329				8,021
Other charges (income), net		(1,533)				(1,011)
Adjusted operating profit		$	284,101	(b)	30.0	$	307,704	31.3

Note:
(b)	Adjusted operating profit decreased 8% as compared to the same period in 2023.

-4-

METTLER-TOLEDO INTERNATIONAL INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(amounts in thousands except share data)

(unaudited)



		Six months ended				Six months ended
		June 30, 2024			% of sales	June 30, 2023		% of sales

Net sales		$	1,872,699	(a)	100.0	$	1,910,855	100.0
Cost of sales		758,898			40.5	780,746		40.9
Gross profit		1,113,801			59.5	1,130,109		59.1

Research and development		92,186			4.9	92,722		4.9
Selling, general and administrative		470,186			25.1	463,232		24.2
Amortization		36,406			1.9	35,821		1.9
Interest expense		38,182			2.0	37,433		2.0
Restructuring charges		14,993			0.8	12,295		0.6
Other charges (income), net		(1,876)			—	(1,407)		(0.1)
Earnings before taxes		463,724			24.8	490,013		25.6

Provision for taxes		64,401			3.5	87,660		4.5
Net earnings		$	399,323		21.3	$	402,353	21.1

Basic earnings per common share:
Net earnings		$	18.70			$	18.28
Weighted average number of common shares		21,358,339				22,013,662

Diluted earnings per common share:
Net earnings		$	18.60			$	18.15
Weighted average number of common and common equivalent shares		21,468,995				22,164,394

Note:
(a)	Local currency sales decreased 1% as compared to the same period in 2023.

RECONCILIATION OF EARNINGS BEFORE TAXES TO ADJUSTED OPERATING PROFIT

		Six months ended				Six months ended
		June 30, 2024			% of sales	June 30, 2023		% of sales

Earnings before taxes		$	463,724			$	490,013
Amortization		36,406				35,821
Interest expense		38,182				37,433
Restructuring charges		14,993				12,295
Other charges (income), net		(1,876)				(1,407)
Adjusted operating profit		$	551,429	(b)	29.4	$	574,155	30.0

Note:
(b)	Adjusted operating profit decreased 4% as compared to the same period in 2023.

-5-

METTLER-TOLEDO INTERNATIONAL INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(amounts in thousands)

(unaudited)



	June 30, 2024		December 31, 2023

Cash and cash equivalents	$	70,810	$	69,807
Accounts receivable, net	634,710		663,893
Inventories	366,395		385,865
Other current assets and prepaid expenses	106,392		110,638
Total current assets	1,178,307		1,230,203

Property, plant and equipment, net	768,664		803,374
Goodwill and other intangible assets, net	933,513		955,537
Other non-current assets	368,680		366,441
Total assets	$	3,249,164	$	3,355,555

Short-term borrowings and maturities of long-term debt	$	311,246	$	192,219
Trade accounts payable	199,462		210,411
Accrued and other current liabilities	770,474		778,452
Total current liabilities	1,281,182		1,181,082

Long-term debt	1,746,638		1,888,620
Other non-current liabilities	374,106		435,791
Total liabilities	3,401,926		3,505,493

Shareholders’ equity	(152,762)		(149,938)
Total liabilities and shareholders’ equity	$	3,249,164	$	3,355,555

-6-

METTLER-TOLEDO INTERNATIONAL INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(amounts in thousands)

(unaudited)


	Three months ended				Six months ended
	June 30,				June 30,
	2024		2023		2024		2023
Cash flow from operating activities:
Net earnings	$	221,814	$	213,927	$	399,323	$	402,353
Adjustments to reconcile net earnings to
net cash provided by operating activities:
Depreciation	12,351		12,194		24,873		24,217
Amortization	18,178		18,042		36,406		35,821
Deferred tax benefit	(1,774)		(2,368)		(3,837)		(1,766)
One-time non-cash discrete tax benefit	(22,982)		—		(22,982)		—
Other	4,541		4,195		9,263		8,222
Increase (decrease) in cash resulting from changes in
operating assets and liabilities	25,378		20,821		4,447		(48,774)
Net cash provided by operating activities	257,506		266,811		447,493		420,073
Cash flows from investing activities:
Proceeds from sale of property, plant and equipment	668		412		668		412
Purchase of property, plant and equipment	(23,810)		(28,751)		(41,201)		(51,947)
Proceeds from government funding (a)	—		1,264		—		1,264
Acquisitions	(1,473)		—		(2,473)		(613)
Other investing activities	2,783		(15,837)		12,239		(14,414)
Net cash used in investing activities	(21,832)		(42,912)		(30,767)		(65,298)
Cash flows from financing activities:
Proceeds from borrowings	572,715		475,903		1,022,578		1,080,921
Repayments of borrowings	(598,912)		(455,215)		(1,017,192)		(958,731)
Proceeds from exercise of stock options	6,305		7,614		8,136		19,087
Repurchases of common stock	(212,499)		(250,000)		(424,998)		(499,999)
Acquisition contingent consideration payment	—		(5,626)		—		(5,626)
Other financing activities	(1,910)		(103)		(1,910)		(714)
Net cash used in financing activities	(234,301)		(227,427)		(413,386)		(365,062)

Effect of exchange rate changes on cash and cash equivalents	(754)		(1,983)		(2,337)		(2,105)

Net increase (decrease) in cash and cash equivalents	619		(5,511)		1,003		(12,392)
Cash and cash equivalents:
Beginning of period	70,191		89,085		69,807		95,966
End of period	$	70,810	$	83,574	$	70,810	$	83,574

RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO ADJUSTED FREE CASH FLOW
Net cash provided by operating activities	$	257,506	$	266,811	$	447,493	$	420,073
Payments in respect of restructuring activities	5,966		5,415		15,680		7,398
Transition tax payment	10,723		8,042		10,723		8,042
Proceeds from sale of property, plant and equipment	668		412		668		412
Purchase of property, plant and equipment, net (a)	(23,810)		(24,907)		(41,201)		(44,815)
Acquisition payments (b)	—		4,775		—		4,775
Adjusted free cash flow	$	251,053	$	260,548	$	433,363	$	395,885
Notes:
(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 and six months ended June 30, 2023 the Company received funding proceeds of $1.3 million. During the three and six months ended June 30, 2023 the related purchase of property, plant and equipment of $3.8 million and $7.1 million, respectively, are excluded from Adjusted free cash flow.
(b) Includes $4.4 million of the PendoTECH contingent consideration payment that was reported in net cash provided by operating activities as required by U.S. GAAP for the three and six months ended June 30, 2023.

-7-

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 June 30, 2024				2%			5%	(16)%			(4)%
	Six Months Ended June 30, 2024				3%			6%	(14)%			(2)%

Local Currency Sales Growth
	Three Months Ended June 30, 2024				2%			6%	(13)%			(2)%
	Six Months Ended June 30, 2024				2%			6%	(11)%			(1)%
Note:

RECONCILIATION OF DILUTED EPS AS REPORTED TO ADJUSTED DILUTED EPS
(unaudited)

		Three months ended							Six months ended
		June 30,							June 30,
		2024			2023			% Growth	2024			2023			% Growth

EPS as reported, diluted		$	10.37		$	9.69		7%	$	18.60		$	18.15		2%

Purchased intangible amortization, net of tax		0.24		(a)	0.23		(a)		0.47		(a)	0.46		(a)
Restructuring charges, net of tax		0.20		(b)	0.29		(b)		0.56		(b)	0.45		(b)
Income tax expense		(1.16)		(c)	(0.02)		(c)		(1.10)		(c)	(0.24)		(c)

Adjusted EPS, diluted		$	9.65		$	10.19		(5)%	$	18.53		$	18.82		(2)%

Notes:
(a)	Represents the EPS impact of purchased intangibles amortization of $6.5 million ($5.0 million net of tax) and $6.7 million ($5.2 million net of tax) for the three months ended June 30, 2024 and 2023, and of $13.1 million ($10.1 million net of tax) and $13.3 million ($10.3 million net of tax) for the six months ended June 30, 2024 and 2023, respectively.
(b)	Represents the EPS impact of restructuring charges of $5.3 million ($4.3 million after tax) and $8.0 million ($6.5 million after tax) for the three months ended June 30, 2024 and 2023, and $15.0 million ($12.1 million after tax) and $12.3 million ($10.0 million after tax) for the six months ended June 30, 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 and six months ended June 30, 2024 and 2023 due to the timing of excess tax benefits associated with stock option exercises. Also includes a reported EPS reduction of $1.07 for the three and six months ended June 30, 2024 for the one-time non-cash discrete tax benefit resulting from the reduction of uncertain tax position liabilities related to the settlement of a tax audit.

-8-

Mettler-Toledo International (MTD) 8-KMettler-toledo International Inc. Reports Second Quarter 2024 Results