EX-99.1 2 tpex99_1.htm FIRST QUARTER 2008 RESULTS tpex99_1.htm
Exhibit 99.1


METTLER-TOLEDO INTERNATIONAL INC. REPORTS
FIRST QUARTER 2008 RESULTS

- - Strong Operating Results - -
- - EPS Outlook Increased for 2008 - -
 
COLUMBUS, Ohio, USA – April 24, 2008 – Mettler-Toledo International Inc. (NYSE: MTD) today announced first quarter results for 2008.  Here are the highlights:
 
·  
Sales growth in local currency was 5%.  Reported sales growth was 13%, which included an 8% currency benefit.
 
·  
Net earnings per diluted share as reported (EPS) were $1.06, an increase of 36% over the first quarter 2007 amount of $0.78.  Adjusted EPS was $1.01, an increase of 26% over the prior year amount of $0.80.  Adjusted EPS is a non-GAAP measure and a reconciliation to EPS is provided on the last page of the attached schedules.
 
·  
Projected 2008 EPS is estimated at $5.43 to $5.53.  Adjusted EPS is also estimated at $5.43 to $5.53 and excludes $0.07 per share for purchased intangible amortization expense and $0.07 per share gain for a discrete tax item.
 
First Quarter Results

Olivier Filliol, President and Chief Executive Officer, stated, “We have seen continued solid momentum in our business.  Sales growth was in line with our expectations and, combined with good gross margin expansion, drove strong growth in operating profit and EPS.”

EPS was $1.06, an increase of 36% over the prior year amount of $0.78.  Adjusted EPS was $1.01, an increase of 26% over the prior year amount of $0.80.

Sales were $439.0 million, compared with $387.8 million in the prior year, an increase of 5% in local currency sales.  Reported sales growth was 13%, which included an 8% favorable currency benefit.  By region, local currency sales growth was 4% in Europe, 0% in the Americas and 18% in Asia / Rest of World.  Adjusted operating income amounted to $58.3 million, a 20% increase over the prior year amount of $48.7 million.

Cash flow from operations was $8.2 million, compared with $32.3 million in 2007.  The Company repurchased 954,200 shares of its stock for $95.6 million during the quarter.

Outlook Raised

The Company believes that its local currency sales growth will be in the 4% to 6% range and estimates 2008 EPS in the range of $5.43 to $5.53.

Adjusted 2008 EPS is also estimated in the range of $5.43 to $5.53 and represents a 15% to 17% increase over 2007.  Previously the Company provided guidance for Adjusted 2008 EPS in the range of $5.30 to $5.45.  Adjusted 2008 EPS excludes $0.07 per share for purchased intangibles amortization expense and $0.07 per share gain for a discrete tax item.

For the second quarter, the Company estimates EPS in the range of $1.24 to $1.26.  Adjusted EPS is estimated in the range of $1.26 to $1.28, which represents a 16% to 17% increase over the prior year quarter.

Conclusion

Filliol concluded, “Our product pipeline is as robust as ever, and our programs surrounding excellence in sales and marketing, emerging markets and cost leadership remain well on track.  We remain confident in our ability to execute our strategic initiatives.  Given the economic uncertainty, we will cautiously manage our expense growth.”

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 24) 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 supplier 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 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, 2007.  The Company assumes no obligation to update this press release.

 
 
 

 
 
 
CONSOLIDATED STATEMENTS OF OPERATIONS
 
(amounts in thousands except share data)
 
(unaudited)
                   
   
Three months ended
        
Three months ended
    
   
March 31, 2008
    
% of sales
  
March 31, 2007
  
% of sales
                   
Net sales
$438,955
 
(a)
100.0
 
$387,764
 
100.0
Cost of sales
217,803
    
49.6 
  
196,285
 
50.6
Gross profit
221,152
    
50.4
 
191,479
 
49.4
                   
Research and development
24,254
   
5.5
 
21,336 
  
5.5
Selling, general and administrative
138,602
   
31.6
 
121,436
  
31.3
Amortization
2,405
   
0.6
 
2,925
 
0.8
Interest expense
5,849 
    
1.3
 
4,460
 
1.2
Other charges/(income), net
1,675
    
0.4
  
(362)
  
(0.1)
Earnings before taxes
48,367
   
11.0
 
41,684 
  
10.7
                   
Provision for taxes
10,088
   
2.3
 
11,254
 
2.9
Net earnings
$38,279
   
8.7 
  
$30,430
 
7.8
                   
Basic earnings per common share:
                
Net earnings
$1.09
       
$0.80
   
Weighted average number of common shares
35,119,322
        
38,065,483
    
                   
Diluted earnings per common share:
                
Net earnings
$1.06
       
$0.78
   
Weighted average number of common
35,993,750
        
38,931,681
    
  and common equivalent shares
                
                   
Notes:
                
(a)
Local currency sales increased 5% as compared to the same period in 2007.

 
 
RECONCILIATION OF EARNINGS BEFORE TAXES TO ADJUSTED OPERATING INCOME
                   
   
Three months ended
        
Three months ended
    
   
March 31, 2008
    
% of sales
  
March 31, 2007
  
% of sales
                   
Earnings before taxes
$48,367
       
$41,684
    
Amortization
2,405
       
2,925
   
Interest expense
5,849
        
4,460
   
Other charges/(income), net
1,675
        
(362)
    
Adjusted operating income
$58,296
 
(a)
13.3
 
$48,707
 
12.6
                   
Note:
                
(a)
Adjusted operating income increased 20% as compared to the same period in 2007.
 

 
 

 
METTLER-TOLEDO INTERNATIONAL INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(amounts in thousands)
(unaudited)
       
       
 
March 31, 2008
  
December 31, 2007
       
Cash and cash equivalents
$80,684
  
$81,222
Accounts receivable, net
342,867
  
354,596
Inventory
199,872
  
173,725
Other current assets and prepaid expenses
86,548
  
73,666
Total current assets
709,971
  
683,209
       
Property, plant and equipment, net
256,259
  
249,605
Goodwill and other intangibles
547,733
  
540,787
Other non-current assets
224,405
  
204,613
Total assets
$1,738,368
  
$1,678,214
       
Short-term debt
$19,694
  
$11,570
Accounts payable
106,175
  
127,109
Accrued and other current liabilities
301,759
  
309,094
Total current liabilities
427,628
  
447,773
       
Long-term debt
471,855
  
385,072
Other non-current liabilities
279,877
  
264,083
Total liabilities
1,179,360
  
1,096,928
       
Shareholders’ equity
559,008
  
581,286
Total liabilities and shareholders’ equity
$1,738,368
  
$1,678,214
       

 
 
 
 
METTLER-TOLEDO INTERNATIONAL INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(amounts in thousands)
(unaudited)
 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 
   
2008
    
2007
  
             
Cash flow from operating activities:
            
    Net earnings
   $ 38,279     $ 30,430  
    Adjustments to reconcile net earnings to
                
      net cash provided by operating activities:
                
Depreciation
     7,304       6,454  
Amortization
     2,405       2,925  
Deferred taxation
     (451 )     (2,375 )
Excess tax benefits from share-based payment arrangements
     (219 )     (2,455 )
Other
     (550 )     2,086  
    Increase in cash resulting from changes in
                
      operating assets and liabilities (a)
     (38,537 )     (4,762 )
                Net cash provided by operating activities (a)
     8,231       32,303  
                 
Cash flows from investing activities:
                
    Proceeds from sale of property, plant and equipment
     12,476       206  
    Purchase of property, plant and equipment
     (7,379 )     (7,857 )
                Net cash provided by (used in) investing activities
     5,097       (7,651 )
                 
Cash flows from financing activities:
                
    Proceeds from borrowings
     124,032       3,792  
    Repayments of borrowings
     (44,722 )     (17,306 )
    Proceeds from stock option exercises
     1,219       6,023  
    Excess tax benefits from share-based payment arrangements
     219       2,455  
    Repurchases of common stock
     (98,611 )     (76,939 )
                Net cash used in financing activities
     (17,863 )     (81,975 )
                 
Effect of exchange rate changes on cash and cash equivalents
     3,997       1,584  
                 
Net decrease in cash and cash equivalents
     (538 )     (55,739 )
                 
Cash and cash equivalents:
                
    Beginning of period
     81,222       151,269  
    End of period
   $ 80,684     $ 95,530  
                 
Note:
                
 
(a)
The decrease in 2008 resulted principally from approximately $11.5 million of higher payments relating to 2007 performance-related compensation incentives (bonus payments), reduced accounts payable balances of $20.1 million and the timing of tax disbursements of $8.1 million, in the three months ended March 31, 2008 compared to the corresponding period in 2007.
 
             
             
              RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW
            
             
Net cash provided by operating activities
   $ 8,231     $ 32,303  
    Excess tax benefits from share-based payment arrangements
     219       2,455  
    Proceeds from sale of property, plant and equipment
     12,476       206  
    Purchase of property, plant and equipment
     (7,379 )     (7,857 )
Free cash flow (a)
   $ 13,547     $ 27,107  
                 

 
 
 
 
 
METTLER-TOLEDO INTERNATIONAL INC.
OTHER OPERATING STATISTICS
         
         
LOCAL CURRENCY SALES GROWTH BY DESTINATION
         
         
   
 
Europe
Americas
Asia/RoW
Total
         
Three Months Ended March 31, 2008
4%
0%
18%
5%
         

 
RECONCILIATION OF DILUTED EPS AS REPORTED TO ADJUSTED DILUTED EPS
  
(unaudited)
  
   
 
Three months ended
  
 
March 31,
  
 
2008
  
2007
  
%
Growth
  
                   
EPS as reported, diluted
      
$1.06
  
$0.78
  
36%
                   
Discrete tax item
      
   (0.07)
(a)
        -
    
Purchased intangible amortization
      
    0.02
(b)
    0.02
(b)
  
                   
Adjusted EPS, diluted
      
$1.01
  
$0.80
  
26%
                   

Notes:
(a)
The discrete tax item in 2008 pertains to the EPS impact of a tax benefit related to a favorable tax law change of $2.5 million recorded during the first quarter.
 
(b)
Represents the EPS impact of purchased intangibles amortization, net of tax, of $0.6 million for the three months ended March 31, 2008 and 2007.