01—Abstract
Summary
Summary of the 10-K filed February 11, 2022. Cited figures are marked; the original filing is the authoritative source.
Mettler-Toledo International Inc. reported a strong 2021 in its 10-K.
Net sales rose to $3.72 billiona from $3.09 billion in 2020 and $3.01 billion in 2019, an increase of 21% in U.S. dollars and 18% in local currencies. Growth was broad-based, with particularly strong results in China (Chinese Operations net sales up 34% in U.S. dollars) and in laboratory products, which made up about 56% of net sales. Net earnings were $768.985 million, or $32.78 per diluted share, versus $602.7 million ($24.91 per diluted share) in 2020.
Gross margin held at 58.4%, and cash from operations reached $908.8 millionb. The company spent $1.0 billion on share repurchases in 2021 (739,486 shares) and has $2.1 billion of remaining authorization. It also completed two acquisitions: PendoTECH, for an initial cash payment of $185.0 million, and Scale-up Systems, for $20.2 million.
Total debt was about $1.68 billionc at year-end, and shareholders' equity was only $171.4 million, reflecting cumulative buybacks. Management flagged risks including COVID-19 and the Omicron variant, supply chain and inflation pressures, China concentration, currency exposure, and tougher prior-period comparisons in 2022.
The company historically has not paid dividends. Its share repurchase program and its planned use of cash are the main capital allocation themes, and management said it intends to spend a similar amount on buybacks in 2022.
02—Key points
Key Highlights
- Net sales of $3.72 billion in 2021, up 21% in U.S. dollars and 18% in local currencies from $3.09 billion in 2020.
- Diluted EPS of $32.78 in 2021, compared with $24.91 in 2020; net earnings of $768.985 million.
- Chinese Operations net sales rose 34% in U.S. dollars to $1.06 billion; China accounted for 21% of sales to external customers.
- Laboratory products represented about 56% of 2021 net sales, rising 25% in U.S. dollars; industrial products were about 39%.
- Repurchased $1.0 billion of common stock in 2021 and has $2.1 billion remaining under the authorization; management intends a similar buyback spend in 2022.
- Acquired PendoTECH (initial cash payment of $185.0 million) and Scale-up Systems ($20.2 million) in 2021.
- Cash provided by operating activities was $908.8 million in 2021, up from $724.7 million in 2020; total debt was about $1.68 billion at year-end.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2021filed February 11, 2022Financial Statements
FY2021 against FY2020
| Line item | FY2021FY2020 | Change |
|---|---|---|
| Revenue | $3.72B$3.09B | +20.5% |
| Gross Profit | $2.17B$1.80B | +20.6% |
| R&D Expenses | $169.77M$140.10M | +21.2% |
| SG&A Expenses | $943.98M$820.22M | +15.1% |
| Interest Expense | $43.24M$38.62M | +12.0% |
| Net Income | $768.99M$602.74M | +27.6% |
| EPS (Basic) | $33.25$25.24 | +31.7% |
| EPS (Diluted) | $32.78$24.91 | +31.6% |
| Shares Outstanding (Basic) | 23.13M23.88M | −3.2% |
| Shares Outstanding (Diluted) | 23.46M24.20M | −3.1% |
05—Questions
Frequently Asked Questions
How did Mettler-Toledo perform financially in 2021?
Net sales were $3.72 billion, up 21% in U.S. dollars and 18% in local currencies. Gross profit as a percentage of net sales was 58.4%, and net earnings were $768.985 million, or $32.78 per diluted share.
Which regions and businesses drove growth?
Growth was broad-based, with China particularly strong: Chinese Operations net sales rose 34% in U.S. dollars. Laboratory products increased 25% in U.S. dollars, led by strong growth in pipettes and process analytics, and industrial products rose 18%.
How is the company returning capital to shareholders?
Mettler-Toledo has not historically paid dividends. It repurchased $1.0 billion of stock in 2021, has $2.1 billion of remaining authorization, and intends to spend a similar amount on repurchases in 2022, subject to business and economic conditions.
What are the main risks flagged in the filing?
Key risks include COVID-19 and the Omicron variant, supply chain and inflationary pressures, a significant concentration of business in China, currency fluctuations (particularly the Swiss franc, euro and renminbi), and difficult prior-period comparisons in 2022. The filing also notes total debt of about $1.6 billion, net of cash.
How much debt does the company carry and what is its liquidity position?
Total debt was $1.68 billion at December 31, 2021, including $601.0 million drawn on a $1.25 billion credit facility, and cash and equivalents were $98.6 million. The filing states about $649.0 million of additional borrowings were available under the Credit Agreement, and the company was in compliance with its debt covenants.
06—Continue