EX-99.1 2 tp8kex99_1.txt EXHIBIT 99.1 METTLER-TOLEDO INTERNATIONAL INC. REPORTS FOURTH QUARTER 2004 RESULTS - - STRONG FOURTH QUARTER OPERATING PERFORMANCE - - -- INCREASED CASH FLOW GENERATION -- GREIFENSEE, Switzerland and COLUMBUS, Ohio, USA - February 9, 2005 - Mettler-Toledo International Inc. (NYSE: MTD) today announced net earnings of $36.3 million, or $0.81 per share on a diluted basis, for the quarter ended December 31, 2004. This compares with net earnings per share of $0.72 for the fourth quarter of 2003. Included in the fourth quarter 2004 net earnings were costs related to the previously disclosed investigation of $0.02 per share. For the year ended December 31, 2004, net earnings per share were $2.37. This amount includes investigation-related costs of $0.08 per share. Net earnings per share in 2003 were $2.11 and included a restructuring charge of $0.08 related to the closure of a manufacturing facility in France. Sales for the quarter were $399.2 million, compared with $370.4 million in the prior year. This represents an 8% increase in reported sales, consisting of a 3% increase in local currency sales and a 5% increase due to currency. Adjusted operating income amounted to $59.0 million, compared with $54.1 million last year. Included in adjusted operating income in the current quarter are $1.1 million in investigation costs. Operating cash flow in the quarter increased 14% over the prior year to $44.1 million. Sales for the year ended December 31, 2004, were $1.4 billion, compared with $1.3 billion in the prior year. This represents an 8% increase in reported sales, consisting of 3% local currency sales growth and a 5% increase due to currency. Adjusted operating income was $179.4 million in 2004 and $161.9 million in 2003. Adjusted operating income in 2004 includes investigation costs of $5.0 million and in 2003 includes a restructuring charge of $5.4 million. Operating cash flow in 2004 was $166.0 million, versus $117.2 million in the prior period, an increase of 42%. Robert F. Spoerry, Chairman, President and Chief Executive Officer, stated, "We are very pleased with our record operating performance in the fourth quarter. Local currency sales growth was in line with our expectations, and we are experiencing improving market conditions in Europe. Fourth quarter gross margins were at their highest level ever, reflecting our continued focus on reducing costs and our efforts to bring more value to our solutions offering. Finally, our cash flow continues to steadily increase. In 2004, we spent more than $100 million on share repurchases and reduced our net debt by $60 million." Spoerry concluded, "Although the economic environment for 2005 remains uncertain, we currently see improving conditions in Europe and the United States and expect China to continue to generate growth, albeit not at the unusually high level we saw in 2004. Our franchise is fundamentally strong with market-leading positions, an outstanding technology portfolio and a world-class global sales and service network. When these competitive advantages are combined with solid execution of our business strategies, we should add another year to our record of strong financial performance." For the year ended December 31, 2004, the Company reported local currency sales growth of 2% in the Americas and 15% in Asia and Rest of World and constant local currency sales in Europe. During the fourth quarter the Company repurchased 859,100 shares of its common stock. During 2004, the Company repurchased 2.2 million shares. The Company will host a conference call to discuss its fourth quarter results today (Wednesday, February 9) 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. METTLER TOLEDO is a leading global supplier of precision instruments and services. The Company is the world's largest manufacturer and marketer of weighing instruments for use in laboratory, industrial and food retailing applications. The Company also holds top-three market positions in several related analytical instruments and is a leading provider of automated chemistry systems used in drug and chemical compound discovery and development. In addition, the Company is the world's largest manufacturer and marketer of metal detection and other end-of-line inspection systems used in production and packaging and holds a leading position in certain process analytics applications. Additional information about METTLER TOLEDO can be found on the World Wide Web at "www.mt.com." Statements in this discussion which are not historical facts may be considered "forward-looking statements" that involve risks and uncertainties. For a discussion of these risks and uncertainties, which could cause actual events or results to differ from those contained in the forward-looking statements, see Exhibit 99.1 to the Company's Annual Report on Form 10-K for the fiscal year December 31, 2003. The Company assumes no obligation to update this press release. METTLER-TOLEDO INTERNATIONAL INC. COMPARATIVE FINANCIAL INFORMATION (AMOUNTS IN THOUSANDS EXCEPT SHARE DATA)
THREE months ended THREE months ended December 31, 2004 December 31, 2003 (unaudited) % (unaudited) % Net sales $ 399,205 100.0 (a) $ 370,446 100.0 Cost of sales 200,748 50.3 194,203 52.4 --------- ----- ------------ ----- Gross profit 198,457 49.7 176,243 47.6 Research and development 22,208 5.5 20,918 5.6 Selling, general and administrative 117,268 29.4 101,226 27.4 --------- ----- ------------ ----- Adjusted operating income 58,981 14.8 54,099 14.6 Amortization 3,627 0.9 3,148 0.9 Interest expense 3,241 0.8 3,475 0.9 Other charges (income), net 273 0.1 417 0.1 --------- ----- ------------ ----- Earnings before taxes 51,840 13.0 47,059 12.7 Provision for taxes 15,551 3.9 14,118 3.8 --------- ----- ------------ ----- Net earnings $ 36,289 9.1 $ 32,941 8.9 ========= ===== ============ ===== Diluted per share amounts: Net earnings $ 0.81 $ 0.72 Weighted average number of common 44,828,205 45,711,078 shares
Notes: (a) Net sales in U.S. dollars increased 8% as compared to the same period in 2003, of which 5% was due to currency exchange rate fluctuations. METTLER-TOLEDO INTERNATIONAL INC. CONSOLIDATED STATEMENTS OF OPERATIONS (AMOUNTS IN THOUSANDS EXCEPT SHARE DATA) AS REPORTED AS REPORTED ----------- ----------- THREE months ended THREE months ended December 31, 2004 December 31, 2003 (unaudited) (unaudited) Net sales $ 399,205 $ 370,446 Cost of sales 200,748 194,203 ----------- ----------- Gross profit 198,457 176,243 Research and development 22,208 20,918 Selling, general and administrative 117,268 101,226 Amortization 3,627 3,148 Interest expense 3,241 3,475 Other charges (income), net 273 417 ----------- ----------- Earnings before taxes 51,840 47,059 Provision for taxes 15,551 14,118 ----------- ----------- Net earnings $ 36,289 $ 32,941 =========== =========== Basic earnings per common share: Net earnings $ 0.83 $ 0.74 Weighted average number of common shares 43,601,286 44,582,017 Diluted earnings per common share: Net earnings $ 0.81 $ 0.72 Weighted average number of common shares 44,828,205 45,711,078 METTLER-TOLEDO INTERNATIONAL INC. COMPARATIVE FINANCIAL INFORMATION (AMOUNTS IN THOUSANDS EXCEPT SHARE DATA)
YEAR ended YEAR ended December 31, 2004 December 31, 2003 (unaudited) % % Net sales $ 1,404,454 100.0 (a) $ 1,304,431 100.0 Cost of sales 722,047 51.4 686,255 52.6 ------------ ----- ------------- ----- Gross profit 682,407 48.6 618,176 47.4 Research and development 83,217 5.9 78,003 6.0 Selling, general and administrative 419,780 29.9 372,822 28.6 Restructuring charge - - 5,444 0.4 (b)(c) ------------ ----- ------------- ----- Adjusted operating income 179,410 12.8 161,907 12.4 Amortization 12,256 0.9 11,724 0.9 Interest expense 12,888 0.9 14,153 1.1 Other charges (income), net 42 0.0 (881) (0.1) ------------ ----- ------------- ----- Earnings before taxes 154,224 11.0 136,911 10.5 Provision for taxes 46,267 3.3 41,073 3.2 ------------ ----- ------------- ----- Net earnings $ 107,957 7.7 $ 95,838 7.3 ============ ===== ============= ===== Diluted per share amounts: Net earnings $ 2.37 $ 2.11 (d) Weighted average number of common shares 45,483,969 45,508,847
Notes: (a) Net sales in U.S. dollars increased 8% as compared to the same period in 2003, of which 5% was due to currency exchange rate fluctuations. (b) Relates to the final union settlement on the facility closure in France. As described in Note 15 in the Company's Annual Report on Form 10-K for the year ended December 31, 2003, in accordance with U.S. GAAP, the Company accrued the minimum contractual payment required by French law in the restructuring charge taken in the second quarter of 2002. (c) In the Consolidated Statements of Operations, the restructuring charge is included in Other charges (income), net. (d) Includes the impact of $0.08 from the restructuring charge, net of tax benefit. METTLER-TOLEDO INTERNATIONAL INC. CONSOLIDATED STATEMENTS OF OPERATIONS (AMOUNTS IN THOUSANDS EXCEPT SHARE DATA) AS REPORTED AS REPORTED ----------- ----------- YEAR ended YEAR ended December 31, 2004 December 31, 2003 (unaudited) Net sales $ 1,404,454 $ 1,304,431 Cost of sales 722,047 686,255 -------------- -------------- Gross profit 682,407 618,176 Research and development 83,217 78,003 Selling, general and administrative 419,780 372,822 Amortization 12,256 11,724 Interest expense 12,888 14,153 Other charges (income), net 42 4,563 (a) -------------- -------------- Earnings before taxes 154,224 136,911 Provision for taxes 46,267 41,073 (b) -------------- -------------- Net earnings $ 107,957 $ 95,838 ============== ============== Basic earnings per common share: Net earnings $ 2.44 $ 2.15 Weighted average number of common shares 44,237,214 44,473,913 Diluted earnings per common share: Net earnings $ 2.37 $ 2.11 Weighted average number of common shares 45,483,969 45,508,847 (a) Includes a restructuring charge of $5,444 ($3,811 after tax) related to the final union settlement on the facility closure in France. As described in Note 15 in the Company's Annual Report on Form 10-K for the year ended December 31, 2003, in accordance with U.S. GAAP, the Company accrued the minimum contractual payment required by French law in the restructuring charge taken in the second quarter of 2002. (b) Includes a tax benefit of $1,633 in respect of (a) above. METTLER-TOLEDO INTERNATIONAL INC. CONDENSED CONSOLIDATED BALANCE SHEETS (AMOUNTS IN THOUSANDS) December 31, December 31, 2004 2003 (unaudited) Cash and cash equivalents $ 67,176 $ 45,116 Accounts receivable, net 271,097 249,353 Inventories, net 156,539 151,764 Other current assets and prepaid expenses 57,545 59,304 ------------ ------------- Total current assets 552,357 505,537 Property, plant and equipment, net 242,709 231,512 Goodwill and other intangibles 560,181 551,346 Other non-current assets 124,825 98,881 ------------ ------------- Total assets $ 1,480,072 $ 1,387,276 ============ ============= Short-term debt $ 6,913 $ 18,277 Accounts payable 85,129 68,243 Accrued and other current liabilities 256,204 241,389 ------------ ------------- Total current liabilities 348,246 327,909 Long-term debt 196,290 223,239 Other non-current liabilities 214,650 182,132 ------------ ------------- Total liabilities 759,186 733,280 Shareholders' equity 720,886 653,996 ------------ ------------- Total liabilities and shareholders' equity $ 1,480,072 $ 1,387,276 ============ ============= METTLER-TOLEDO INTERNATIONAL INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (AMOUNTS IN THOUSANDS)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS THREE months ended YEAR ended December 31, December 31, 2004 2003 2004 2003 (unaudited) (unaudited) (unaudited) Cash flow from operating activities: Net earnings $ 36,289 $ 32,941 $ 107,957 $ 95,838 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation 7,029 6,234 26,668 25,086 Amortization 3,627 3,148 12,256 11,724 Other 713 2,632 569 13 Voluntary pension contributions (10,006) (17,111) (10,006) (17,111) Increase (decrease) in cash resulting from changes in operating assets and liabilities 6,412 10,933 28,549 1,681 ----------- -------- --------- ----------- Net cash provided by operating activities 44,064 38,777 165,993 117,231 ----------- -------- --------- ----------- Cash flows from investing activities: Proceeds from sale of property, plant and equipment 104 238 1,819 2,092 Purchase of property, plant and equipment (10,365) (9,510) (27,882) (27,152) Acquisitions - (964) (2,287) (4,450) ----------- -------- --------- ----------- Net cash used in investing activities (10,261) (10,236) (28,350) (29,510) ----------- -------- --------- ----------- Cash flows from financing activities: Proceeds from borrowings 12,682 197,122 81,027 248,726 Repayments of borrowings (6,948) (215,324) (121,631) (325,946) Proceeds from exercise of stock options 14,668 1,447 25,567 3,577 Repurchases of common stock (42,302) - (102,397) - Refinancing fees - (3,077) - (3,077) ----------- -------- --------- ----------- Net cash used in financing activities (21,900) (19,832) (117,434) (76,720) Effect of exchange rate changes on cash and cash equivalents 1,225 1,012 1,851 2,688 ----------- -------- --------- ----------- Net increase in cash and cash equivalents 13,128 9,721 22,060 13,689 Cash and cash equivalents: Beginning of period 54,048 35,395 45,116 31,427 ----------- -------- --------- ----------- End of period $ 67,176 $ 45,116 $ 67,176 $ 45,116 =========== ======== ========= ===========
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW Net cash provided by operating activities $ 44,064 $ 38,777 $ 165,993 $ 117,231 Payments in respect of restructuring activities 662 3,653 3,982 16,792 Proceeds from sale of property, plant and equipment 104 238 1,819 2,092 Purchase of property, plant and equipment (10,365) (9,510) (27,882) (27,152) Refinancing fees - (3,077) - (3,077) Other - 599 - 596 ---------- ---------- ---------- ---------- Free cash flow $ 34,465 $ 30,680 $ 143,912 $ 106,482 ========== ========== ========== ==========
METTLER-TOLEDO INTERNATIONAL INC. OTHER OPERATING STATISTICS
SALES GROWTH BY DESTINATION 3 months ended December 31, 2004 ------------------------------------------------------------ Europe Americas Asia/RoW Total U.S. dollar sales growth 12% 0% 15% 8% Impact of currency exchange rate fluctuations -9% -1% -2% -5% ------- ------- ------- ------- Local currency sales growth 3% -1% 13% 3% Year ended December 31, 2004 ------------------------------------------------------------ Europe Americas Asia/RoW Total U.S. dollar sales growth 9% 2% 19% 8% Impact of currency exchange rate fluctuations -9% 0% -4% -5% ------- ------- ------- ------- Local currency sales growth 0% 2% 15% 3%