Mettler-Toledo International (MTD) 8-K Mettler-toledo International Inc. Reports

FOR IMMEDIATE RELEASE Exhibit 99.1

METTLER-TOLEDO INTERNATIONAL INC. REPORTS

FOURTH QUARTER 2018 RESULTS

- - Excellent Sales Growth - -

- - Strong Earnings Growth - -

COLUMBUS, Ohio, USA - February 7, 2019 - Mettler-Toledo International Inc. (NYSE: MTD) today announced fourth quarter results for 2018. Provided below are the highlights:

• Reported sales increased 5% compared with the prior year. In local currency, sales increased 8% in the quarter as currency reduced sales growth by 3%.

• Net earnings per diluted share as reported (EPS) were $7.11, compared with $2.93 in the prior-year period. Adjusted EPS was $6.85, an increase of 15% over the prior-year amount of $5.97. Adjusted EPS is a non-GAAP measure, and we have included a reconciliation to EPS on the last page of the attached schedules.

Fourth Quarter Results

Olivier Filliol, President and Chief Executive Officer, stated, "We achieved excellent sales growth in the quarter with very good results in most of our Laboratory and Industrial product lines. China had another quarter of strong sales growth. We benefited from our productivity and margin initiatives, and despite adverse currency and higher tariff costs, recognized a strong increase in operating margins and earnings growth."

GAAP Results

EPS in the quarter was $7.11, compared with the prior-year amount of $2.93. Included in 2018 EPS is a one-time non-cash acquisition-related gain of $0.75 and included in 2017 EPS is a tax charge of $2.74. Additional details on one-time items included in EPS are found in the attached schedules.

Compared with the prior year, total reported sales increased 5% to $817.9 million. By region, reported sales increased 6% in the Americas, 3% in Europe and 7% in Asia/Rest of World. Earnings before tax amounted to $230.5 million, compared with $193.9 million in the prior year.

Non-GAAP Results

Adjusted EPS was $6.85, an increase of 15% over the prior-year amount of $5.97.

Compared with the prior year, total sales in local currency increased 8% as currency reduced reported sales growth by 3%. By region, local currency sales increased 7% in the Americas, 6% in Europe and 10% in Asia/Rest of World. Adjusted Operating Income amounted to $239.7 million, an 11% increase from the prior-year amount of $216.9 million.

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

Full Year Results

GAAP Results

EPS in 2018 was $19.88, compared with the prior-year amount of $14.24. Included in 2018 EPS is a one-time non-cash acquisition-related gain of $0.74 and included in 2017 EPS is a tax charge of $2.73. Additional details on one-time items included in EPS are found in the attached schedules.

Total reported sales increased 8% in 2018 to $2.936 billion. By region, reported sales increased 5% in the Americas, 7% in Europe and 12% in Asia/Rest of World. Earnings before tax amounted to $651.9 million, compared with $574.2 million in the prior year.

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Non-GAAP Results

Adjusted EPS was $20.32, an increase of 16% over the prior-year amount of $17.57.

Total sales in local currency increased 6% in 2018 as currency benefited reported sales growth by 2%. By region, local currency sales increased 5% in the Americas, 4% in Europe and 10% in Asia/Rest of World. Adjusted Operating Income amounted to $730.5 million, a 12% increase from the prior-year amount of $652.6 million.

Adjusted EPS and Adjusted Operating Income 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 $22.50 to $22.70, a growth rate of 11% to 12%. Previously, the Company provided guidance for Adjusted EPS in the range of $22.40 to $22.60.

Based on today's assessment of market conditions, management anticipates that local currency sales growth in the first quarter 2019 will be approximately 5.5%, and Adjusted EPS is forecasted to be in the range of $4.00 to $4.05, an increase of 7% to 8%.

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, "We ended 2018 on a positive note as demand in our markets remains solid and our growth initiatives continue to yield strong results. We are cautious on the global economy as uncertainties exist, particularly concerning trade tariff disputes. We will continue to monitor developments closely and adapt our plans if economic conditions change. We assume market conditions will remain favorable and are confident in our ability to execute on our growth initiatives. With the benefit of our investments in our field force, Spinnaker sales and marketing programs and new product launches, we believe we are well positioned to continue to gain market share. With the positive impact from margin and productivity initiatives and, despite headwinds due to currency and tariffs, 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, Feb. 7) at 4:30 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”

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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.

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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
		December 31, 2018				% of sales	December 31, 2017				% of sales
Net sales		$	817,923		(a)	100.0	$	778,031			100.0
Cost of sales		340,357				41.6	322,256			(b)	41.4
Gross profit		477,566				58.4	455,775				58.6
Research and development		36,205				4.4	32,324			(b)	4.2
Selling, general and administrative		201,653				24.7	206,547			(b)	26.5
Amortization		11,963				1.5	11,661				1.5
Interest expense		8,840				1.1	8,625				1.1
Restructuring charges		4,464				0.5	3,932				0.5
Other charges (income), net		(16,013		)		(2.0)	(1,214		)	(b)	(0.1)
Earnings before taxes		230,454				28.2	193,900				24.9
Provision for taxes		49,268			(c)	6.0	116,924			(c)	15.0
Net earnings		$	181,186			22.2	$	76,976			9.9
Basic earnings per common share:
Net earnings		$	7.25				$	3.01
Weighted average number of common shares		24,975,303					25,562,542
Diluted earnings per common share:
Net earnings		$	7.11				$	2.93
Weighted average number of common and common equivalent shares		25,490,270					26,229,052
Note:
(a)	Local currency sales increased 8% as compared to the same period in 2017.
(b)	In accordance with the new accounting rules that went into effect January 1, 2018, the Company reclassified a net pension benefit of $0.9 million into other charges (income) from other income statement categories for the three months ended December 31, 2017 to be consistent with 2018 presentation.
(c)	Provision for taxes includes charges of $3.6 million and $72 million for the three months ended December 31, 2018 and 2017, respectively, for the implementation of the Tax Cuts and Jobs Act.
RECONCILIATION OF EARNINGS BEFORE TAXES TO ADJUSTED OPERATING INCOME
		Three Months Ended					Three Months Ended
		December 31, 2018				% of sales	December 31, 2017				% of sales
Earnings before taxes		$	230,454				$	193,900
Amortization		11,963					11,661
Interest expense		8,840					8,625
Restructuring charges		4,464					3,932
Other charges (income), net		(16,013		)	(d)		(1,214		)
Adjusted operating income		$	239,708		(e)	29.3	$	216,904			27.9
Note:
(d)	Other charges (income), net includes a one-time gain of $18.7 million relating to the Biotix acquisition contingent consideration and a one-time legal charge of $3.0 million for the three months ended December 31, 2018.
(e)	Adjusted operating income increased 11% as compared to the same period in 2017.

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METTLER-TOLEDO INTERNATIONAL INC. CONSOLIDATED STATEMENTS OF OPERATIONS (amounts in thousands except share data) (unaudited)
		Twelve Months Ended						Twelve Months Ended
		December 31, 2018				% of sales		December 31, 2017				% of sales
Net sales		$	2,935,586		(a)	100.0		$	2,725,053			100.0
Cost of sales		1,251,208				42.6		1,149,302			(b)	42.2
Gross profit		1,684,378				57.4		1,575,751				57.8
Research and development		141,071				4.8		128,308			(b)	4.7
Selling, general and administrative		812,802				27.7		794,861			(b)	29.2
Amortization		47,524				1.6		42,671				1.6
Interest expense		34,511				1.2		32,785				1.2
Restructuring charges		18,420				0.6		12,772				0.5
Other charges (income), net		(21,808		)		(0.7	)	(9,868		)	(b)	(0.5	)
Earnings before taxes		651,858				22.2		574,222				21.1
Provision for taxes		139,247			(c)	4.7		198,250			(c)	7.2
Net earnings		$	512,611			17.5		$	375,972			13.8
Basic earnings per common share:
Net earnings		$	20.33					$	14.62
Weighted average number of common shares		25,215,674						25,713,575
Diluted earnings per common share:
Net earnings		$	19.88					$	14.24
Weighted average number of common and common equivalent shares		25,781,324						26,393,783
Note:
(a)	Local currency sales increased 6% as compared to the same period in 2017.
(b)	In accordance with the new accounting rules that went into effect on January 1, 2018, the Company reclassified a net pension benefit of $4.0 million into other charges (income) from other income statement categories for the twelve months ended December 31, 2017 to be consistent with 2018 presentation.
(c)	Provision for taxes includes charges of $3.6 million and $72 million for the twelve months ended December 31, 2018 and 2017, respectively, for the implementation of the Tax Cuts and Jobs Act.
RECONCILIATION OF EARNINGS BEFORE TAXES TO ADJUSTED OPERATING INCOME
		Twelve Months Ended						Twelve Months Ended
		December 31, 2018				% of sales		December 31, 2017				% of sales
Earnings before taxes		$	651,858					$	574,222
Amortization		47,524						42,671
Interest expense		34,511						32,785
Restructuring charges		18,420						12,772
Other charges (income), net		(21,808		)	(d)			(9,868		)	(f)
Adjusted operating income		$	730,505		(e)	24.9		$	652,582			23.9
Note:
(d)	Other charges (income), net includes a one-time gain of $18.7 million relating to the Biotix acquisition contingent consideration and a one-time legal charge of $3.0 million for the twelve months ended December 31, 2018.
(e)	Adjusted operating income increased 12% as compared to the same period in 2017.
(f)	Other charges (income), net includes a one-time gain of $3.4 million relating to the sale of a facility in Switzerland in connection with our initiative to consolidate certain Swiss operations into a new facility and $1.7 million of acquisition costs for the twelve months ended December 31, 2017.

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METTLER-TOLEDO INTERNATIONAL INC. CONDENSED CONSOLIDATED BALANCE SHEETS (amounts in thousands) (unaudited)
	December 31, 2018		December 31, 2017
Cash and cash equivalents	$	178,110	$	148,687
Accounts receivable, net	535,528		528,615
Inventories	268,821		255,390
Other current assets and prepaid expenses	63,401		74,031
Total current assets	1,045,860		1,006,723
Property, plant and equipment, net	717,526		668,271
Goodwill and other intangible assets, net	752,088		766,556
Other non-current assets	103,373		108,255
Total assets	$	2,618,847	$	2,549,805
Short-term borrowings and maturities of long-term debt	$	49,670	$	19,677
Trade accounts payable	196,641		167,627
Accrued and other current liabilities	488,123		502,369
Total current liabilities	734,434		689,673
Long-term debt	985,021		960,170
Other non-current liabilities	309,329		352,682
Total liabilities	2,028,784		2,002,525
Shareholders’ equity	590,063		547,280
Total liabilities and shareholders’ equity	$	2,618,847	$	2,549,805

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METTLER-TOLEDO INTERNATIONAL INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (amounts in thousands) (unaudited)
	Three months ended						Twelve months ended
	December 31,						December 31,
	2018			2017			2018			2017
Cash flow from operating activities:
Net earnings	$	181,186		$	76,976		$	512,611		$	375,972
Adjustments to reconcile net earnings to
net cash provided by operating activities:
Depreciation	9,278			9,037			37,167			33,458
Amortization	11,963			11,661			47,524			42,671
Deferred tax provision (benefit)	14,203			5,009			2,302			(2,745		)
Share-based compensation	5,074			4,759			17,579			16,582
U.S. tax reform charge (a)	3,597			71,982			3,597			71,982
Acquisition gain (b)	(18,674		)	—			(18,674		)	—
Gain on facility sale	—			—			—			(3,394		)
Other	147			16			(2,559		)	243
Decrease in cash resulting from changes in
operating assets and liabilities	(8,202		)	(14,350		)	(34,542		)	(18,444		)
Net cash provided by operating activities	198,572			165,090			565,005			516,325
Cash flows from investing activities:
Proceeds from sale of property, plant and equipment	381			1,536			8,190			11,973
Purchase of property, plant and equipment	(46,061		)	(41,600		)	(142,726		)	(127,426		)
Acquisitions	(565		)	—			(5,527		)	(108,445		)
Net hedging settlements on intercompany loans	1,899			2,838			1,119			6,554
Net cash used in investing activities	(44,346		)	(37,226		)	(138,944		)	(217,344		)
Cash flows from financing activities:
Proceeds from borrowings	168,341			258,501			940,615			1,244,195
Repayments of borrowings	(172,620		)	(351,111		)	(876,324		)	(1,185,172		)
Proceeds from exercise of stock options	9,823			5,334			24,600			28,649
Repurchases of common stock	(118,750		)	(64,999		)	(474,999		)	(399,997		)
Other financing activities	(250		)	—			(1,914		)	(7,205		)
Net cash used in financing activities	(113,456		)	(152,275		)	(388,022		)	(319,530		)
Effect of exchange rate changes on cash and cash equivalents	(108		)	4,012			(8,616		)	10,562
Net increase (decrease) in cash and cash equivalents	40,662			(20,399		)	29,423			(9,987		)
Cash and cash equivalents:
Beginning of period	137,448			169,086			148,687			158,674
End of period	$	178,110		$	148,687		$	178,110		$	148,687
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO ADJUSTED FREE CASH FLOW
Net cash provided by operating activities	$	198,572		$	165,090		$	565,005		$	516,325
Payments in respect of restructuring activities	4,119			4,962			20,820			12,663
Payments for acquisition costs	233			672			375			1,436
Transition tax payment	—			—			4,200			—
Proceeds from sale of property, plant and equipment	381			1,536			8,190			11,973
Purchase of property, plant and equipment	(46,061		)	(41,600		)	(142,726		)	(127,426		)
Adjusted free cash flow	$	157,244		$	130,660		$	455,864		$	414,971
(a) Represents U.S. tax reform charges of $3.6 million and $72 million for the three and twelve months ended December 31, 2018 and 2017, respectively, for the implementation of the Tax Cuts and Jobs Act.
(b) Represents a one-time gain of $18.7 million relating to the Biotix acquisition contingent consideration for the three and twelve months ended December 31, 2018.

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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
	Three Months Ended December 31, 2018					3		%		6	%	7		%		5		%
	Twelve Months Ended December 31, 2018					7		%		5	%	12		%		8		%
Local Currency Sales Growth
	Three Months Ended December 31, 2018					6		%		7	%	10		%		8		%
	Twelve Months Ended December 31, 2018					4		%		5	%	10		%		6		%
RECONCILIATION OF DILUTED EPS AS REPORTED TO ADJUSTED DILUTED EPS
(unaudited)
		Three months ended										Twelve months ended
		December 31,										December 31,
		2018				2017				% Growth		2018				2017				% Growth
EPS as reported, diluted		$	7.11			$	2.93			143%		$	19.88			$	14.24			40%
Restructuring charges, net of tax		0.14			(a)	0.12			(a)			0.56			(a)	0.38			(a)
Purchased intangible amortization, net of tax		0.10			(b)	0.09			(b)			0.39			(b)	0.27			(b)
U.S. tax reform		0.14			(c)	2.74			(c)			0.14			(c)	2.73			(c)
Income tax expense		0.02			(d)	0.09			(d)			—				—
Acquisition (gain) costs, net of tax		(0.75		)	(e)	—						(0.74		)	(e)	0.05			(e)
Legal charge, net of tax		0.09			(f)	—						0.09			(f)	—
Gain on facility sale		—				—						—				(0.10		)	(g)
Adjusted EPS, diluted		$	6.85			$	5.97			15%		$	20.32			$	17.57			16%
Notes:
(a)	Represents the EPS impact of restructuring charges of $4.5 million ($3.5 million after tax) and $3.9 million ($3.1 million after tax) for the three months ended December 31, 2018 and 2017, and $18.4 million ($14.5 million after tax) and $12.8 million ($10.0 million after tax) for the twelve months ended December 31, 2018 and 2017, respectively, which primarily include employee related costs.
(b)	Represents the EPS impact of purchased intangibles amortization of $3.3 million ($2.5 million after tax) and $3.7 million ($2.3 million after tax) for the three months ended December 31, 2018 and 2017, and $13.3 million ($10.0 million after tax) and $10.9 million ($7.1 million after tax) for the twelve months ended December 31, 2018 and 2017, respectively.
(c)	Represents the EPS impact of U.S. tax reform charges of $3.6 million and $72.0 million for the three and twelve months ended December 31, 2018 and 2017, respectively, for the implementation of the Tax Cuts and Jobs Act.
(d)	Represents the EPS impact of the difference between our quarterly and annual tax rate from excess tax benefits associated with stock option exercises.
(e)	Represents the EPS impact of a one-time gain of $18.7 million ($19.2 million after tax) for the three and twelve months ended December 31, 2018 associated with the Biotix acquisition contingent consideration. Amounts for the twelve months ended December 31, 2017 represent the EPS impact of acquisition costs of $1.7 million ($1.3 million after tax).
(f)	Represents the EPS impact of a one-time legal charge of $3.0 million ($2.4 million after tax) for the three and twelve months ended December 31, 2018.
(g)	Represents the EPS impact of a one-time gain of $3.4 million ($2.7 million after tax) for the twelve months ended December 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.

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