-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, FeLvL2lP04TlFz8g6SMUi2UPUomIir5byS9jWpb2DgaTfKS3fDefOyveV/mGwZ5p 2PVweJMRGGZk6gud80iTEw== 0000895345-06-000860.txt : 20061102 0000895345-06-000860.hdr.sgml : 20061102 20061102161353 ACCESSION NUMBER: 0000895345-06-000860 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20061102 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20061102 DATE AS OF CHANGE: 20061102 FILER: COMPANY DATA: COMPANY CONFORMED NAME: METTLER TOLEDO INTERNATIONAL INC/ CENTRAL INDEX KEY: 0001037646 STANDARD INDUSTRIAL CLASSIFICATION: LABORATORY ANALYTICAL INSTRUMENTS [3826] IRS NUMBER: 133668641 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-13595 FILM NUMBER: 061182896 BUSINESS ADDRESS: STREET 1: IM LANGACHER P O BOX MT-100 STREET 2: CH 8606 GREIFENSEE CITY: SWITZERLAND STATE: V8 ZIP: 10022 BUSINESS PHONE: 2126445900 MAIL ADDRESS: STREET 1: IM LANGACHER STREET 2: P O BOX MT 100 CH 8606 GREIFENSEE CITY: SWITZERLAND STATE: V8 ZIP: 10022 FORMER COMPANY: FORMER CONFORMED NAME: METTLER TOLEDO INTERNATIONAL INC DATE OF NAME CHANGE: 19971117 FORMER COMPANY: FORMER CONFORMED NAME: MT INVESTORS INC DATE OF NAME CHANGE: 19970411 8-K 1 tp8k_mettler.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): November 2, 2006 METTLER-TOLEDO INTERNATIONAL INC. (Exact name of registrant as specified in its charter) Delaware File No. 001-13595 13-3668641 (State of incorporation) (Commission File Number) (I.R.S. Employer Identification No.) Im Langacher, P.O. Box MT-100 CH-8606, Greifensee, Switzerland ------------------------------------------- (Address of principal executive offices) (zip code) Registrant's telephone number, including area code: +41-44-944-2211 Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION The following information is furnished pursuant to Item 2.02, "Results of Operations and Financial Condition." The information furnished in this Form 8-K and the Exhibit attached hereto shall not be treated as filed for purposes of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing. On November 2, 2006, Mettler-Toledo International Inc. ("Mettler-Toledo") issued a press release (the "Release") setting forth its financial results for the three and nine months ended September 30, 2006. A copy of the Release is furnished hereto as Exhibit 99.1 to this report. NON-GAAP FINANCIAL MEASURES Mettler-Toledo supplements its U.S. GAAP results with non-GAAP financial measures. The principal non-GAAP financial measures Mettler-Toledo uses are Adjusted Operating Income and Free Cash Flow. Adjusted Operating Income Mettler-Toledo defines Adjusted Operating Income as gross profit less research and development, selling, general and administrative expenses (excluding share-based compensation) and restructuring charges, before share-based compensation expense, amortization, interest, other income, net and taxes. The most directly comparable U.S. GAAP financial measure is earnings before taxes. Mettler-Toledo believes that Adjusted Operating Income is important supplemental information for investors. Adjusted Operating Income is used internally as the principal profit measurement by its segments in their reporting to management. Mettler-Toledo uses this measure because it excludes share-based compensation expense, amortization, interest, other income, net and taxes, which are not allocated to the segments. On a consolidated basis, Mettler-Toledo also believes Adjusted Operating Income is an important supplemental method of measuring profitability. It is used internally by senior management for measuring profitability and setting performance targets for managers, and has historically been used as one of the means of publicly providing guidance on possible future results. Mettler-Toledo also believes that Adjusted Operating Income is an important performance measure because it provides a measure of comparability to other companies with different capital or legal structures, which accordingly may be subject to disparate interest rates and effective tax rates, and to companies which may incur different amortization expenses or impairment charges related to intangible assets. Adjusted Operating Income is used in addition to and in conjunction with results presented in accordance with U.S. GAAP. Adjusted Operating Income is not intended to represent operating income under U.S. GAAP and should not be considered as an alternative to earnings before taxes as an indicator of Mettler-Toledo's performance because of the following limitations. Limitations of Mettler-Toledo's non-GAAP measure, Adjusted Operating Income Mettler-Toledo's non-GAAP measure, Adjusted Operating Income, has certain material limitations as follows: o It does not include interest expense. Because Mettler-Toledo has borrowed money to finance some of its operations, interest is a necessary and ongoing part of its costs and has assisted Mettler-Toledo in generating revenue. Therefore any measure that excludes interest expense has material limitations. o It excludes amortization expense and other income, net. Because these items are recurring, any measure that excludes them has material limitations. o It excludes share-based compensation expense. Because of the adoption of SFAS 123R on January 1, 2006 the prior period comparable does not include this expense. Free Cash Flow Mettler-Toledo defines Free Cash Flow as net cash provided by operating activities less capital expenditures and refinancing fees, before restructuring payments. The most directly comparable U.S. GAAP financial measure is net cash provided by operating activities. Mettler-Toledo believes Free Cash Flow is important supplemental information for investors. It is used internally by senior management for measuring operating cash flow generation and setting performance targets for managers, and has historically been used as one of the means of providing guidance on possible future cash flows. Free Cash Flow is used in addition to and in conjunction with results presented in accordance with U.S. GAAP. Free Cash Flow is not intended to represent net cash provided by operating activities recorded under U.S. GAAP and should not be considered as an alternative to net cash provided by operating activities as an indicator of Mettler-Toledo's performance because of the following limitations. Limitations of Mettler-Toledo's non-GAAP measure, Free Cash Flow Mettler-Toledo's non-GAAP measure, Free Cash Flow, has certain material limitations as follows: o It includes purchases of property, plant and equipment and refinancing fees, which are not considered to be components of net cash provided by operating activities under U.S. GAAP. Therefore any measure that includes purchases of property, plant and equipment and refinancing fees has material limitations. o It excludes restructuring payments, which are considered to be a component of net cash provided by operating activities under U.S. GAAP. Therefore any measure that excludes restructuring payments has material limitations. Adjusted Operating Income and Free Cash Flow should not be relied upon to the exclusion of U.S. GAAP financial measures, but reflect additional measures of comparability and means of viewing aspects of Mettler-Toledo's operations that, when viewed together with its U.S. GAAP results and the accompanying reconciliations to net earnings and net cash provided by operating activities, provide a more complete understanding of factors and trends affecting its business. Because Adjusted Operating Income and Free Cash Flow are not standardized, it may not be possible to compare with other companies' non-GAAP financial measures having the same or similar names. We strongly encourage investors to review our financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. The Release provides a reconciliation of Adjusted Operating Income and Free Cash Flow to the most comparable financial measures recorded under U.S. GAAP. ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS Exhibit No. Description - ----------- ----------- 99.1 Press release, dated November 2, 2006, issued by Mettler-Toledo International Inc. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. METTLER-TOLEDO INTERNATIONAL INC. Dated: November 2, 2006 By: /s/ William P. Donnelly ----------------------------- William P. Donnelly Chief Financial Officer EX-99.1 2 tpexh99_1.txt EXHIBIT 99.1 METTLER-TOLEDO INTERNATIONAL INC. REPORTS THIRD QUARTER 2006 RESULTS - - STRONG LOCAL CURRENCY SALES GROWTH - - - - STRONG EARNINGS AND CASH FLOW GROWTH - - GREIFENSEE, Switzerland and COLUMBUS, Ohio, USA - November 2, 2006 - Mettler-Toledo International Inc. (NYSE: MTD) today announced net earnings per diluted share of $1.16 for the quarter ended September 30, 2006. During the quarter, the Company reduced its annual effective tax rate from 30% to 27%. As a result, the third quarter earnings included a discrete tax benefit of $0.06 per share to adjust the tax rate for the first two quarters of 2006 to 27%. The third quarter results also included an additional $0.19 per share net benefit for other discrete tax items and $0.03 per share expense of share-based compensation. In the third quarter of 2005, net earnings per diluted share were $0.60 and included a net charge of $0.12 due to discrete tax items. The third quarter 2005 results did not include any share-based compensation expense. Net earnings per diluted share on a reported basis increased 93% in the third quarter 2006 over the prior year quarter. Adjusting for the one-time tax items in both periods and for share-based compensation expense - - net earnings per diluted share would have increased 31% over the prior year. To facilitate comparability, a reconciliation of EPS is provided in the attached schedules. Robert F. Spoerry, Chairman, President and Chief Executive Officer, stated, "We are very pleased with our strong sales growth and operating performance in the quarter - particularly in light of the solid results in the year-ago quarter. Demand in most of our markets is favorable, and sales increased in all key businesses and geographic regions. We continue to reinforce our technology leadership with new product introductions, and our sales and marketing initiatives are proving highly effective. Positive market conditions and our focus on execution led to a healthy increase in operating profit and robust cash flow generation. Our EPS growth of 31% on a comparable basis was excellent." Sales for the quarter were $397.3 million, compared with $365.4 million in the prior year, an increase of 7% in local currency sales. Reported sales growth in the quarter was 9%, which includes a 2% favorable currency benefit. By region, local currency sales growth for the quarter was 5% in Europe, 6% in the Americas and 11% in Asia / Rest of World. In the quarter, adjusted operating income amounted to $57.8 million, a 14% increase over the prior period amount of $50.9 million. For the nine-month period, net earnings per diluted share were $2.56 in 2006, which included the $0.19 net tax benefit as mentioned above and $0.10 of share-based compensation. Net earnings per diluted share in the comparable 2005 period were $1.49 and included the above-mentioned $0.12 tax charge and $0.30 charge for previously disclosed litigation. Net earnings in 2005 did not include share-based compensation. On an as reported basis, net earnings per diluted share increased 72% over the prior year period. Excluding the effects of the one-time items in both periods and share-based compensation, net earnings per diluted share would have increased 29% over the prior year. To facilitate comparability, a reconciliation of EPS is provided in the attached schedules. Sales for the nine-month period were $1.133 billion, compared with $1.071 billion in the prior year. This represents a 6% increase in reported sales, consisting of 6% local currency sales growth and no impact due to currency. Adjusted operating income for the nine-month period was $154.7 million in 2006, a 12% increase over the prior year amount of $138.0 million. Cash flow from operations in the third quarter was $67.5 million, compared with $60.3 million in the prior year quarter. Cash flow from operations in the nine-month period was $139.7 million, compared with $117.6 million in the prior year. The Company repurchased 1.1 million shares of its stock for $65.3 million in the third quarter and 3.0 million shares for $182.4 million in the first nine months of 2006. The Company stated that it expects EPS for the fourth quarter of 2006 to be in the range of $1.16 to $1.21, which includes share-based compensation. This estimate assumes local currency sales growth of 3% to 5%. The Company noted that it completed a tax reorganization in the third quarter of 2006 and, as a result, it expects its effective tax rate in the fourth quarter to be approximately 27%. EPS in the fourth quarter, excluding share-based compensation, is estimated at $1.20 to $1.25. The fourth quarter estimates would result in local currency sales growth of approximately 6% for the full year 2006 and as reported EPS in the range of $3.72 to $3.77. This estimate includes a net $0.19 per share benefit for discrete tax items as mentioned earlier and a $0.14 charge for share-based compensation. Excluding both share-based compensation and discrete tax items, EPS for the full year would be in the range of $3.67 to $3.72 and represents approximately 26% growth over comparable 2005 EPS. The Company stated that based on an economic environment and market conditions similar to today's, it expects 2007 EPS to be in the range of $4.00 to $4.10, assuming local currency sales growth in the 4% to 6% range. The Company noted the 2007 estimates include share-based compensation and reflect an effective tax rate of approximately 27%. On a comparable basis excluding the one-time tax items in 2006 and using the mid-points of the 2006 and 2007 estimates, this represents a growth of approximately 14%. Spoerry concluded, "We are cautiously optimistic as we look toward 2007. We assume market conditions will remain positive, and we are confident in our ability to execute our initiatives. As always we will monitor our end markets and react should conditions change. We have a well-proven strategy in place that is aimed at generating solid sales growth which, when combined with our margin improvement initiatives and share repurchase strategy, generates strong earnings growth." The Company has provided a reconciliation of earnings before taxes, the most comparable U.S. GAAP measure, to adjusted operating income in the attached schedules. The Company will host a conference call to discuss its third quarter results today (Thursday, November 2) 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 "Factors affecting our future operating results" in Part I, Item 1A, of the Company's Annual Report on Form 10-K for the fiscal year December 31, 2005. The Company assumes no obligation to update this press release. METTLER-TOLEDO INTERNATIONAL INC. CONSOLIDATED STATEMENTS OF OPERATIONS (AMOUNTS IN THOUSANDS EXCEPT SHARE DATA) (UNAUDITED)
Three months ended Three months ended September 30, 2006 % of sales September 30, 2005 % of sales Net sales $ 397,318 (a) 100.0 $ 365,428 100.0 Cost of sales 203,261 51.2 186,422 51.0 ----------- ----- ----------- ----- Gross profit 194,057 48.8 179,006 49.0 Research and development 20,478 5.2 19,315 5.3 Selling, general and administrative 117,762 (b) 29.6 108,777 29.8 Amortization 2,793 0.7 2,816 0.8 Interest expense 4,409 1.1 4,006 1.1 Other income, net (1,441) (0.4) (249) (0.1) ----------- ----- ----------- ----- Earnings before taxes 50,056 12.6 44,341 12.1 Provision for taxes 3,016 (c) 0.8 18,723 (d) 5.1 ----------- ----- ----------- ----- Net earnings $ 47,040 11.8 $ 25,618 7.0 =========== ===== =========== ===== Basic earnings per common share: Net earnings $ 1.18 $ 0.61 Weighted average number of common shares 39,795,452 41,786,186 Diluted earnings per common share: Net earnings $ 1.16 $ 0.60 Weighted average number of common 40,455,687 42,893,530 and common equivalent shares Notes: (a) Local currency sales increased 7% as compared to the same period in 2005. (b) Includes share-based compensation expense of $2.0 million ($1.3 million after-tax) for the three months ended September 30, 2006. (c) Includes tax benefits related to a legal reorganization that resulted in the reduction of the estimated annual effective tax rate from 30% to 27% and discrete tax items of $10.5 million, net. The discrete items comprise a benefit of $2.9 million, net, associated with the legal reorganization, a benefit of $5.1 million resulting from a favorable tax law change and a $2.5 million cumulative tax benefit adjustment related to the tax rate change associated with the first six months of 2006. (d) Includes a net tax charge of $5.4 million related to earnings repatriation associated with the American Jobs Creation Act of $13.1 million offset in part by the favorable resolution of certain tax contingencies of $7.7 million. RECONCILIATION OF EARNINGS BEFORE TAXES TO ADJUSTED OPERATING INCOME Three months ended Three months ended September 30, 2006 % of sales September 30, 2005 % of sales Earnings before taxes $ 50,056 $ 44,341 Share-based compensation 2,011 0 Amortization 2,793 2,816 Interest expense 4,409 4,006 Other income, net (1,441) (249) ----------- ----- ----------- ----- Adjusted operating income $ 57,828 (a) 14.6 $ 50,914 13.9 =========== ===== =========== ===== Note: (a) Adjusted operating income increased 14% as compared to the same period in 2005.
METTLER-TOLEDO INTERNATIONAL INC. CONSOLIDATED STATEMENTS OF OPERATIONS (AMOUNTS IN THOUSANDS EXCEPT SHARE DATA) (UNAUDITED)
Nine months ended Nine months ended September 30, 2006 % of sales September 30, 2005 % of sales Net sales $ 1,132,635 (a) 100.0 $ 1,071,225 100.0 Cost of sales 575,803 50.8 548,999 51.2 ----------- ----- ----------- ----- Gross profit 556,832 49.2 522,226 48.8 Research and development 60,979 5.4 61,053 5.7 Selling, general and administrative 347,469 (b) 30.7 323,209 30.2 Amortization 8,498 0.8 8,615 0.8 Interest expense 12,835 1.1 11,286 1.1 Other charges (income), net (6,536) (0.6) 20,996 (d) 2.0 ----------- ----- ----------- ----- Earnings before taxes 133,587 11.8 97,067 9.0 Provision for taxes 28,075 (c) 2.5 32,357 (e) 3.0 ----------- ----- ----------- ----- Net earnings $ 105,512 9.3 $ 64,710 6.0 =========== ===== =========== ===== Basic earnings per common share: Net earnings $ 2.61 $ 1.53 Weighted average number of common shares 40,460,563 42,427,364 Diluted earnings per common share: Net earnings $ 2.56 $ 1.49 Weighted average number of common 41,155,856 43,573,821 and common equivalent shares Notes: (a) Local currency sales increased 6% as compared to the same period in 2005. (b) Includes share-based compensation expense of $6.3 million ($4.1 million after-tax) for the nine months ended September 30, 2006. (c) Includes tax benefits related to a legal reorganization that resulted in the reduction of the estimated annual effective tax rate from 30% to 27% and discrete tax items of $8.0 million, net. The discrete items comprise a benefit of $2.9 million, net, associated with the legal reorganization and a benefit of $5.1 million resulting from a favorable tax law change. (d) Includes a $21.8 million ($13.1 million after-tax), one-time litigation charge related to a $19.9 million ($12 million after-tax) non-cash write-off of an intellectual property license and $1.9 million ($1.1 million after-tax) of related legal costs. (e) Includes a net tax charge of $5.4 million related to earnings repatriation associated with the American Jobs Creation Act of $13.1 million offset in part by the favorable resolution of certain tax contingencies of $7.7 million. RECONCILIATION OF EARNINGS BEFORE TAXES TO ADJUSTED OPERATING INCOME Nine months ended Nine months ended September 30, 2006 % of sales September 30, 2005 % of sales Earnings before taxes $ 133,587 $ 97,067 Share-based compensation 6,278 0 Amortization 8,498 8,615 Interest expense 12,835 11,286 Other charges (income), net (6,536) 20,996 ----------- ----- ----------- ----- Adjusted operating income $ 154,662 (a) 13.7 $ 137,964 12.9 =========== ===== =========== ===== Note: (a) Adjusted operating income increased 12% as compared to the same period in 2005.
METTLER-TOLEDO INTERNATIONAL INC. CONDENSED CONSOLIDATED BALANCE SHEETS (AMOUNTS IN THOUSANDS) (UNAUDITED)
September 30, 2006 December 31, 2005 Cash and cash equivalents $ 195,358 $ 324,578 Accounts receivable, net 270,712 271,915 Inventory 160,720 150,201 Other current assets and prepaid expenses 61,652 53,965 ----------- ----------- Total current assets 688,442 800,659 Property, plant and equipment, net 220,331 218,519 Goodwill and other intangibles 534,761 528,209 Other non-current assets 119,030 122,386 ----------- ----------- Total assets $ 1,562,564 $ 1,669,773 =========== =========== Short-term debt $ 7,738 $ 6,345 Accounts payable 82,599 88,553 Accrued and other current liabilities 273,038 258,558 ----------- ----------- Total current liabilities 363,375 353,456 Long-term debt 361,418 443,795 Other non-current liabilities 211,304 213,520 ----------- ----------- Total liabilities 936,097 1,010,771 Shareholders' equity 626,467 659,002 ----------- ----------- Total liabilities and shareholders' equity $ 1,562,564 $ 1,669,773 =========== ===========
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (AMOUNTS IN THOUSANDS) (UNAUDITED) CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS Three months ended Nine months ended September 30, September 30, 2006 2005 2006 2005 Cash flow from operating activities: Net earnings $ 47,040 $ 25,618 $ 105,512 $ 64,710 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation 6,422 6,342 19,317 19,458 Amortization 2,793 2,816 8,498 8,615 Deferred taxation (1,549) 7,244 (6,594) (5,108) Excess tax benefits from share-based payment arrangements (412) - (8,160) - Other 2,099 (124) 5,047 19,806 Increase in cash resulting from changes in operating assets and liabilities 11,076 18,413 16,096 10,108 --------- --------- --------- --------- Net cash provided by operating activities 67,469 60,309 139,716 117,589 --------- --------- --------- --------- Cash flows from investing activities: Proceeds from sale of property, plant and equipment 439 280 4,036 874 Purchase of property, plant and equipment (8,808) (9,123) (20,607) (21,046) Acquisitions 0 (3,771) (790) (3,984) --------- --------- --------- --------- Net cash used in investing activities (8,369) (12,614) (17,361) (24,156) --------- --------- --------- --------- Cash flows from financing activities: Proceeds from borrowings 22,144 72,699 51,873 159,318 Repayments of borrowings (74,256) (107,269) (149,605) (130,705) Proceeds from exercise of stock options 5,065 7,526 22,532 11,451 Excess tax benefits from share-based payment arrangements 412 - 8,160 - Repurchases of common stock (a) (65,272) (33,481) (186,616) (108,131) --------- --------- --------- --------- Net cash used in financing activities (111,907) (60,525) (253,656) (68,067) --------- --------- --------- --------- Effect of exchange rate changes on cash and cash equivalents 1,399 3,362 2,081 1,854 --------- --------- --------- --------- Net increase (decrease) in cash and cash equivalents (51,408) (9,468) (129,220) 27,220 Cash and cash equivalents: Beginning of period 246,766 103,864 324,578 67,176 --------- --------- --------- --------- End of period $ 195,358 $ 94,396 $ 195,358 $ 94,396 ========= ========= ========= ========= Note: (a) The nine months ended September 30, 2006 and 2005 include $4.2 million and $1.4 million, respectively, relating to the settlement of a liability for shares purchased as of December 31, 2005 and 2004.
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW Net cash provided by operating activities $ 67,469 $ 60,309 $ 139,716 $ 117,589 Excess tax benefits from share-based payment arrangements 412 - 8,160 - Payments in respect of restructuring activities 0 420 0 1,941 Proceeds from sale of property, plant and equipment 439 280 4,036 874 Purchase of property, plant and equipment (8,808) (9,123) (20,607) (21,046) --------- --------- --------- --------- Free cash flow $ 59,512 $ 51,886 $ 131,305 $ 99,358 ========= ========= ========= =========
METTLER-TOLEDO INTERNATIONAL INC. OTHER OPERATING STATISTICS LOCAL CURRENCY SALES GROWTH BY DESTINATION
Europe Americas Asia/RoW Total ------------------------------------------------- Three Months Ended September 30, 2006 5% 6% 11% 7% Nine Months Ended September 30, 2006 7% 5% 9% 6%
RECONCILIATION OF DILUTED EPS AS REPORTED TO DILUTED EPS EXCLUDING SHARE-BASED COMPENSATION EXPENSE AND ONE-TIME ITEMS (UNAUDITED) Three months ended Nine months ended September 30, September 30, ------------------------------- ------------------------------- % % 2006 2005 Growth 2006 2005 Growth -------- -------- ---------- -------- -------- ---------- EPS as reported, diluted $ 1.16 $ 0.60 93% $ 2.56 $ 1.49 72% Discrete tax items: Benefit in Q3 of adjusting Q1 and Q2 tax rate (a) (0.06) - - - Other discrete tax items (b) (c) (0.19) 0.12 (0.19) 0.12 Share-based compensation (d) 0.03 - 0.10 - Non-cash intangible write-off and litigation (e) - - - 0.30 ------ ------ ------ ------ EPS excluding share-based compensation expense and one-time items, diluted (f) $ 0.94 $ 0.72 31% $ 2.47 $ 1.91 29% ====== ====== ====== ====== Notes: (a) EPS impact during the three months ended September 30, 2006 of adjusting the estimated annual effective tax rate from 30% to 27%, or $2.5 million, relating to the six months ended June 30, 2006. (b) Discrete tax items in 2006 pertain to the EPS impact of tax benefits related to a legal reorganization of $2.9 million, net, and a benefit related to a favorable tax law change of $5.1 million. (c) Discrete tax items in 2005 represent the EPS impact of net tax charges related to earnings repatriation associated with the American Job Creation Act of $13.1 million offset in part by the favorable resolution of certain tax contingencies of $7.7 million. (d) EPS impact of $2.0 million ($1.3 million after-tax) for the three months ended September 30, 2006 and $6.3 million ($4.1 million after-tax) for the nine months ended September 30, 2006 for share-based compensation expense. (e) EPS impact of one-time litigation charge related to a $19.9 million ($12 million after-tax) non-cash write-off of an intellectual property license and $1.9 million ($1.1 million after-tax) of related legal costs. (f) EPS for the periods ended September 30, 2006 and 2005 reflect an effective tax rate of 27% and 30%, respectively.
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