EX-99.1 2 c99928exv99w1.htm EXHIBIT 99.1 Exhibit 99.1
Exhibit 99.1
METTLER-TOLEDO INTERNATIONAL INC. REPORTS
FIRST QUARTER 2010 RESULTS
— Solid Local Currency Sales Growth —
— Strong Growth in Operating Profit and EPS —
COLUMBUS, Ohio, USA — April 29, 2010 — Mettler-Toledo International Inc. (NYSE: MTD) today announced first quarter results for 2010. Provided below are the highlights:
    Sales in local currency increased by 6% in the quarter compared with the prior year. Reported sales growth increased 11%, which includes a 5% benefit from currency.
 
    Net earnings per diluted share as reported (EPS) were $1.10, compared with $1.00 in the first quarter of 2009. Adjusted EPS was $1.13, a 19% increase over the prior-year amount of $0.95. Adjusted EPS is a non-GAAP measure and excludes purchased intangible amortization, discrete tax items, restructuring charges and other one-time items. A reconciliation to EPS is provided on the last page of the attached schedules.
First Quarter Results
Olivier Filliol, President and Chief Executive Officer, stated, “Business conditions further improved in the first quarter with strong sales in emerging market countries. Demand for our laboratory solutions was better than expected; from a regional perspective, growth in the Americas exceeded expectations. We continue to expand gross margins and are pleased with our strong growth in operating profit, EPS and cash flow.”
EPS was $1.10, compared with the prior-year amount of $1.00. Adjusted EPS was $1.13, compared with the prior-year amount of $0.95.
Sales were $416.7 million, a 6% increase in local currency sales, compared with $374.1 million in the prior year. Reported sales growth was 11%, which included a 5% currency benefit. By region, local currency sales increased 11% in the Americas and 15% in Asia / Rest of the World. In Europe, local currency sales decreased 1%. Adjusted operating income amounted to $60.4 million, a 16% increase from the prior-year amount of $52.3 million. Adjusted operating income is a non-GAAP measure, and a reconciliation to earnings before taxes is provided in the attached schedules.
Cash flow from operations was $44.5 million, compared with $34.9 million in 2009.
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Outlook
Based on today’s assessment, management anticipates that local currency sales growth in 2010 will be in the range of 6% to 7% and Adjusted EPS will be in the range of $6.26 to $6.36, an increase of 12% to 14%. This compares with previous guidance of Adjusted EPS in the range of $5.90 to $6.15. Adjusted EPS excludes purchased intangible amortization, discrete tax items, restructuring charges and other one-time items.
For the second quarter 2010, the Company anticipates local currency sales growth will be in the range of 7% to 9% and Adjusted EPS in the range of $1.30 to $1.35, an increase of 11% to 15%.
While the Company has provided an outlook for Adjusted EPS, it has not provided an outlook for EPS. EPS guidance would require an estimate of non-recurring items, which are not yet known.
Conclusion
Filliol concluded, “Our continued investments in new product development and innovative sales and marketing programs during the downturn provide us with momentum now as the economy is improving. We believe we have enhanced our market position over the past 12 months and will strengthen it further as the global economy continues to recover. While we are encouraged by improving business momentum, we remain cautious on certain segments, particularly in Europe.”
Other Matters
The Company will host a conference call to discuss its first quarter results today (Thursday, April 29) 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/investors. The presentation referenced in the conference call will be located on the website prior to the call.
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 press release which are not historical facts constitute “forward-looking statements” within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. These statements involve known and unknown risks, uncertainties and other factors that may cause our or our businesses’ actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by any forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “potential” or “continue” or the negative of those terms or other comparable terminology. For a discussion of these risks and uncertainties, please see the discussion on forward-looking statements in our current report on Form 8-K to which this release has been furnished as an exhibit. All of the forward-looking statements are qualified in their entirety by reference to the factors discussed under the captions “Factors affecting our future operating results” and in the “Business” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of our annual report on Form 10-K for the most recently completed fiscal year, which describe risks and factors that could cause results to differ materially from those projected in those forward-looking statements.
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METTLER-TOLEDO INTERNATIONAL INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(amounts in thousands except share data)
(unaudited)
                                 
    Three months ended             Three months ended        
    March 31, 2010     % of sales     March 31, 2009     % of sales  
 
                               
Net sales
  $ 416,651 (a)     100.0     $ 374,079 (a)     100.0  
Cost of sales
    198,725       47.7       186,157       49.8  
 
                       
Gross profit
    217,926       52.3       187,922       50.2  
 
                               
Research and development
    22,465       5.4       21,570       5.8  
Selling, general and administrative
    135,014       32.4       114,035       30.5  
Amortization
    3,381       0.8       2,683       0.7  
Interest expense
    5,254       1.3       5,241       1.4  
Restructuring charges
    384       0.1       8,355       2.2  
Other charges (income), net
    254             1,005       0.2  
 
                       
Earnings before taxes
    51,174       12.3       35,033       9.4  
 
                               
Provision for taxes
    13,306       3.2       1,154       0.3  
 
                       
Net earnings
  $ 37,868       9.1     $ 33,879       9.1  
 
                       
 
                               
Basic earnings per common share:
                               
Net earnings
  $ 1.12             $ 1.01          
Weighted average number of common shares
    33,757,175               33,631,219          
 
                               
Diluted earnings per common share:
                               
Net earnings
  $ 1.10             $ 1.00          
Weighted average number of common and common equivalent shares
    34,533,067               33,996,251          
Note:
     
(a)   Local currency sales increased 6% as compared to the same period in 2009.
RECONCILIATION OF EARNINGS BEFORE TAXES TO ADJUSTED OPERATING INCOME
                                 
    Three months ended             Three months ended        
    March 31, 2010     % of sales     March 31, 2009     % of sales  
Earnings before taxes
  $ 51,174             $ 35,033          
Amortization
    3,381               2,683          
Interest expense
    5,254               5,241          
Restructuring charges
    384               8,355          
Other charges (income), net
    254               1,005          
 
                           
Adjusted operating income
  $ 60,447 (b)     14.5     $ 52,317       14.0  
 
                           
Note:
     
(b)   Adjusted operating income increased 16% as compared to the same period in 2009.

 

 


 

METTLER-TOLEDO INTERNATIONAL INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(amounts in thousands)
(unaudited)
                 
    March 31, 2010     December 31, 2009  
 
               
Cash and cash equivalents
  $ 85,883     $ 85,031  
Trade accounts receivable, net
    304,121       312,998  
Inventories
    177,047       168,042  
Other current assets and prepaid expenses
    82,718       80,036  
 
           
Total current assets
    649,769       646,107  
 
               
Property, plant and equipment, net
    310,631       316,334  
Goodwill and other intangible assets, net
    550,733       546,234  
Other non-current assets
    204,271       210,112  
 
           
Total assets
  $ 1,715,404     $ 1,718,787  
 
           
 
               
Short-term borrowings and maturities of long-term debt
  $ 92,766     $ 89,968  
Trade accounts payable
    100,927       103,160  
Accrued and other current liabilities
    305,228       301,547  
 
           
Total current liabilities
    498,921       494,675  
 
               
Long-term debt
    203,870       203,590  
Other non-current liabilities
    300,796       309,384  
 
           
Total liabilities
    1,003,587       1,007,649  
 
               
Shareholders’ equity
    711,817       711,138  
 
           
Total liabilities and shareholders’ equity
  $ 1,715,404     $ 1,718,787  
 
           
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METTLER-TOLEDO INTERNATIONAL INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(amounts in thousands)
(unaudited)
                 
    Three months ended  
    March 31,  
    2010     2009  
 
               
Cash flow from operating activities:
               
Net earnings
  $ 37,868     $ 33,879  
Adjustments to reconcile net earnings to net cash provided by operating activities:
               
Depreciation
    7,447       7,049  
Amortization
    3,381       2,683  
Deferred tax provision
    (1,806 )     (3,862 )
Excess tax benefits from share-based payment arrangements
    (920 )     (38 )
Other
    3,044       2,863  
Decrease in cash resulting from changes in operating assets and liabilities
    (4,520 )     (7,703 )
 
           
Net cash provided by operating activities
    44,494       34,871  
 
           
 
               
Cash flows from investing activities:
               
Proceeds from sale of property, plant and equipment
    37       1,868  
Purchase of property, plant and equipment
    (10,461 )     (12,452 )
Acquisitions
    (12,528 )     (170 )
 
           
Net cash used in investing activities
    (22,952 )     (10,754 )
 
           
 
               
Cash flows from financing activities:
               
Proceeds from borrowings
    23,851       58,192  
Repayments of borrowings
    (19,199 )     (32,142 )
Proceeds from exercise of stock options
    3,005       2,960  
Excess tax benefits from share-based payment arrangements
    920       38  
Repurchases of common stock
    (29,181 )      
Other financing activities
    191       (320 )
 
           
Net cash (used in) provided by financing activities
    (20,413 )     28,728  
 
           
 
               
Effect of exchange rate changes on cash and cash equivalents
    (277 )     (148 )
 
               
Net increase in cash and cash equivalents
    852       52,697  
 
               
Cash and cash equivalents:
               
Beginning of period
    85,031       78,073  
 
           
End of period
  $ 85,883     $ 130,770  
 
           
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW
                 
Net cash provided by operating activities
  $ 44,494     $ 34,871  
Excess tax benefits from share-based payment arrangements
    920       38  
Payments in respect of restructuring activities
    4,323       4,574  
Proceeds from sale of property, plant and equipment
    37       1,868  
Purchase of property, plant and equipment
    (10,461 )     (12,452 )
 
           
Free cash flow
  $ 39,313     $ 28,899  
 
           
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METTLER-TOLEDO INTERNATIONAL INC.
OTHER OPERATING STATISTICS
SALES GROWTH BY DESTINATION
(unaudited)
                                 
    Europe     Americas     Asia/RoW     Total  
Three Months Ended March 31, 2010
                               
U.S. dollar growth
    4 %     13 %     21 %     11 %
Local currency growth
    -1 %     11 %     15 %     6 %
RECONCILIATION OF DILUTED EPS AS REPORTED TO ADJUSTED DILUTED EPS
(unaudited)
                         
    Three months ended  
    March 31,  
    2010     2009     % Growth  
 
                       
EPS as reported, diluted
  $ 1.10     $ 1.00       10 %
 
                       
Discrete tax items
          (0.25 )(b)        
Restructuring charges, net of tax
          0.18 (c)        
Purchased intangible amortization, net of tax
    0.03 (a)     0.02 (a)        
 
                   
 
                       
Adjusted EPS, diluted
  $ 1.13     $ 0.95       19 %
 
                   
Notes:
     
(a)   Represents the EPS impact of purchased intangibles amortization, net of tax, of $0.9 million and $0.6 million for the three month periods ended March 31, 2010 and 2009, respectively.
 
(b)   Discrete tax items for the three months ended March 31, 2009 pertain to the EPS impact of a net tax benefit of $8.3 million primarily related to the favorable resolution of certain prior year tax matters.
 
(c)   Represents the EPS impact of restructuring charges of $8.4 million ($6.1 million after tax) for the three month period ended March 31, 2009 which primarily include severance costs.
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