EX-99.1 2 tpex99_1.htm TPEX99_1 tpex99_1
Exhibit 99-1


METTLER-TOLEDO INTERNATIONAL INC. REPORTS
FIRST QUARTER 2007 RESULTS

- - Strong Sales Growth and Operating Performance - -
- - EPS Outlook Increased for 2007 - -

COLUMBUS, Ohio, USA - April 26, 2007 - Mettler-Toledo International Inc. (NYSE: MTD) today announced first quarter results. The highlights of the quarter were:

 
·
Sales growth in local currency was 8%. Reported sales growth was 12%, which included a 4% currency benefit.
 
 
·
Reported net earnings per diluted share (EPS) were $0.78, an increase of 37% over the first quarter 2006 amount of $0.57.
 
 
·
Projected 2007 EPS was increased to $4.18 to $4.28.

First Quarter Results

Robert F. Spoerry, Chairman, President and Chief Executive Officer, stated, “We are very pleased with our record first quarter results and the solid start to 2007. Sales growth was broad-based, and operating profit margins and cash flow generation were strong. Our strategic initiatives remain well on track, and we have increased our full year EPS guidance.”

Reported EPS was $0.78 and increased 37% over the prior year first quarter EPS of $0.57.

Sales were $387.8 million, compared with $346.2 million in the prior year, an increase of 8% in local currency sales. Reported sales growth was 12%, which included a 4% favorable currency benefit. By region, local currency sales growth was 4% in Europe, 10% in the Americas and 11% in Asia / Rest of World. Adjusted operating income amounted to $48.7 million, a 27% increase over the prior year amount of $38.3 million.

Cash flow from operations was $32.3 million, compared with $19.1 million in 2006. The Company repurchased 838,000 shares of its stock for $71.5 million during the quarter.

2007 Outlook Increased

The Company stated that based on first quarter results and economic environment and market conditions that remain similar to today’s, it now expects 2007 EPS to be in the range of $4.18 to $4.28. This compares with previous 2007 EPS guidance of $4.10 to $4.20. In 2006, reported EPS was $3.86 which included a $0.20 benefit for discrete tax items. On a comparable basis - that is, excluding the discrete tax items in 2006 - current EPS guidance represents a growth of approximately 14% to 17%. For the second quarter, the Company expects EPS to be in the range of $1.01 to $1.03.

Other Matters

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 first quarter results today (Thursday, April 26) 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, 2006. 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
    
   
March 31, 2007
    
% of sales
  
March 31, 2006
  
% of sales
                   
Net sales
$387,764
 
(a)
100.0
 
$346,160
 
100.0
Cost of sales
196,285
   
50.6
 
175,820
 
50.8
Gross profit
191,479
   
49.4
 
170,340
 
49.2
                   
Research and development
21,336
   
5.5
 
19,939
 
5.7
Selling, general and administrative (b)
121,436
   
31.3
 
112,131
 
32.4
Amortization
2,925
   
0.8
 
2,855
 
0.8
Interest expense
4,460
   
1.2
 
4,076
 
1.2
Other income, net
(362)
    
(0.1)
  
(2,538)
  
(0.7)
Earnings before taxes
41,684
   
10.7
 
33,877
 
9.8
                   
Provision for taxes
11,254
   
2.9
 
10,162
 
2.9
Net earnings
$30,430
   
7.8
 
$23,715
 
6.9
                   
Basic earnings per common share:
                
Net earnings
$0.80
       
$0.58
   
Weighted average number of common shares
38,065,483
        
41,050,849
    
                   
Diluted earnings per common share:
                
Net earnings
$0.78
       
$0.57
   
Weighted average number of common
38,931,681
        
41,774,068
    
and common equivalent shares
                
                   
Notes:
                
(a)
Local currency sales increased 8% as compared to the same period in 2006.
(b)
Amount includes share-based compensation for all periods presented.

 
RECONCILIATION OF EARNINGS BEFORE TAXES TO ADJUSTED OPERATING INCOME
                   
   
Three months ended
        
Three months ended
    
   
March 31, 2007
    
% of sales
  
March 31, 2006
  
% of sales
                   
Earnings before taxes
$41,684
       
$33,877
   
Amortization
2,925
       
2,855
   
Interest expense
4,460
       
4,076
   
Other income, net
(362)
        
(2,538)
    
Adjusted operating income (b)
$48,707
 
(a)
12.6
 
$38,270
 
11.1
                   
Note:
                
(a)
Adjusted operating income increased 27% as compared to the same period in 2006.
(b)
Amount includes share-based compensation for all periods presented.

 

METTLER-TOLEDO INTERNATIONAL INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(amounts in thousands)
(unaudited)
       
       
 
March 31, 2007
  
December 31, 2006
       
Cash and cash equivalents
$95,530
 
$151,269
Accounts receivable, net
290,671
 
306,879
Inventory
160,590
 
148,372
Other current assets and prepaid expenses
66,154
 
63,250
Total current assets
612,945
 
669,770
       
Property, plant and equipment, net
230,723
 
229,138
Goodwill and other intangibles
536,753
 
535,621
Other non-current assets
153,651
 
152,556
Total assets
$1,534,072
 
$1,587,085
       
Short-term debt
$12,346
 
$9,962
Accounts payable
90,315
 
95,971
Accrued and other current liabilities
250,209
 
278,446
Total current liabilities
352,870
 
384,379
       
Long-term debt
330,916
 
345,705
Other non-current liabilities
250,000
 
226,139
Total liabilities
933,786
 
956,223
       
Shareholders’ equity
600,286
 
630,862
Total liabilities and shareholders’ equity
$1,534,072
 
$1,587,085
       
 
 
 

METTLER-TOLEDO INTERNATIONAL INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(amounts in thousands)
(unaudited)
 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 
 
 
Three months ended
 
March 31,
 
2007
  
2006
       
Cash flow from operating activities:
      
Net earnings
$30,430
 
$23,715
Adjustments to reconcile net earnings to net cash provided by operating activities:
      
Depreciation
6,454
 
6,354
Amortization
2,925
 
2,855
Deferred taxation
(2,375)
  
(1,680)
Excess tax benefits from share-based payment arrangements
(2,455)
  
(5,571)
Other
2,086
 
998
Increase in cash resulting from changes in operating assets and liabilities
(4,762)
  
(7,538)
Net cash provided by operating activities
32,303
 
19,133
       
Cash flows from investing activities:
      
Proceeds from sale of property, plant and equipment
206
 
1,638
Purchase of property, plant and equipment
(7,857)
  
(6,004)
Acquisitions
-
  
(572)
Net cash used in investing activities
(7,651)
  
(4,938)
       
Cash flows from financing activities:
      
Proceeds from borrowings
3,792
 
7,696
Repayments of borrowings
(17,306)
  
(26,784)
Proceeds from exercise of stock options
6,023
 
9,741
Excess tax benefits from share-based payment arrangements
2,455
 
5,571
Repurchases of common stock (a)
(76,939)
  
(72,103)
Net cash used in financing activities
(81,975)
  
(75,879)
       
Effect of exchange rate changes on cash and cash equivalents
1,584
 
503
       
Net decrease in cash and cash equivalents
(55,739)
  
(61,181)
       
Cash and cash equivalents:
      
Beginning of period
151,269
 
324,578
End of period
$95,530
 
$263,397
       
Note:
(a)
The three months ended March 31, 2007 and 2006 include $5.4 million and $4.2 million, respectively, relating to the settlement of a liability for shares purchased as of December 31, 2006 and 2005.
 
 
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW
 
Net cash provided by operating activities
$32,303
 
$19,133
Excess tax benefits from share-based payment arrangements
2,455
 
5,571
Proceeds from sale of property, plant and equipment
206
 
1,638
Purchase of property, plant and equipment
(7,857)
  
(6,004)
Free cash flow
$27,107
 
$20,338
       

 

METTLER-TOLEDO INTERNATIONAL INC.
OTHER OPERATING STATISTICS
         
         
LOCAL CURRENCY SALES GROWTH BY DESTINATION
         
         
   
 
Europe
Americas
Asia/RoW
Total
         
Three Months Ended March 31, 2007
4%
10%
11%
8%