Mettler-Toledo International Inc. Reports Fourth Quarter 2017 Results

METTLER-TOLEDO INTERNATIONAL INC.

OTHER OPERATING STATISTICS

SALES GROWTH BY DESTINATION

(unaudited)

Europe

Americas

Total

U.S. Dollar Sales Growth

Three Months Ended December 31, 2017

9%

9%

10%

10%

Twelve Months Ended December 31, 2017

6%

8%

11%

9%

Local Currency Sales Growth

Three Months Ended December 31, 2017

1%

9%

7%

6%

Twelve Months Ended December 31, 2017

5%

8%

11%

8%

RECONCILIATION OF DILUTED EPS AS REPORTED TO ADJUSTED DILUTED EPS 

(unaudited)

Three months ended

Twelve months ended

December 31,

December 31,

2017

2016

2017

2016

EPS as reported, diluted

$2.93

$5.17

$14.24

$14.22

0%

Restructuring charges, net of tax

0.12

(a)

0.05

(a)

0.38

(a)

0.18

(a)

Purchased intangible amortization, net of tax

0.09

(b)

0.06

(b)

0.27

(b)

0.18

(b)

U.S. tax reform

2.74

(c)

-

2.73

(c)

-

Income tax expense

0.09

(d)

-

-

-

Acquistion costs, net of tax

-

-

0.05

(e)

0.03

(e)

Gain on facility sale

-

-

(0.10)

(f)

-

Non-cash pension settlement charge, net of tax

-

-

-

0.19

(g)

Adjusted EPS, diluted

$5.97

$5.28

13%

$17.57

$14.80

19%

Notes:

(a)

Represents the EPS impact of restructuring charges of $3.9 million ($3.1 million after tax) and $1.7 million ($1.3 million after tax) for the three months ended December 31, 2017 and 2016, and $12.8 million ($10.0 million after tax) and $6.2 million ($4.7 million after tax) for the twelve months ended December 31, 2017 and 2016, respectively, which primarily include employee related costs.

(b)

Represents the EPS impact of purchased intangibles amortization of $3.7 million ($2.3 million after tax) and $2.2 million ($1.5 million after tax) for the three months ended December 31, 2017 and 2016, and $10.9 million ($7.1 million after tax) and $7.4 million ($5.0 million after tax) for the twelve months ended December 31, 2017 and 2016, respectively.

(c)

Represents the EPS impact of a provisional one-time charge of $72.0 million for the three and twelve months ended December 31, 2017 for the implementation of the Tax Cuts and Jobs Act ("Tax Act") which was signed into law in December 2017. The enactment of the Tax Act results in a one-time cash charge for un-repatriated foreign earnings of $59 million which is expected to be paid over a period of up to eight years, and a one-time non-cash charge of $13 million related to certain deferred tax and other non-cash items.  The estimated charge may change with the finalization of implementation.

(d)

Represents the EPS impact of the difference between our reported tax rate of 23% before a one-time charge related to U.S. tax reform during the three months ending December 31, 2017 and our annual income tax rate of 22%, which reflects a 2% annual benefit pertaining to excess tax benefits associated with stock option exercises. 

(e)

Represents the EPS impact of acquisition costs of $1.7 million ($1.3 million after tax) and $1.1 million ($0.8 million after tax) for the twelve months ended December 31, 2017 and 2016, respectively.

(f)

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.

(g)

Represents the EPS impact of a one-time non-cash pension settlement charge of $8.2 million ($5.1 million after tax) related to a lump sum settlement to former employees of our U.S. pension plan for the twelve months ended December 31, 2016.