EX-99.1 2 c03715exv99w1.htm EXHIBIT 99.1 Exhibit 99.1
Exhibit 99.1
FOR IMMEDIATE RELEASE
METTLER-TOLEDO INTERNATIONAL INC. REPORTS
SECOND QUARTER 2010 RESULTS
— Very Strong Local Currency Sales Growth —
— Excellent Growth in Operating Profit and EPS —
COLUMBUS, Ohio, USA — July 22, 2010 — Mettler-Toledo International Inc. (NYSE: MTD) today announced second quarter results for 2010. Provided below are the highlights:
    Sales in local currency increased by 16% in the quarter compared with the prior year. Reported sales growth increased 15%, which includes a negative 1% currency impact.
    Net earnings per diluted share as reported (EPS) were $1.49, compared with $0.81 in the second quarter of 2009. Adjusted EPS was $1.55, a 32% increase over the prior-year amount of $1.17. 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.
Second Quarter Results
Olivier Filliol, President and Chief Executive Officer, stated, “Sales growth in the quarter was better than expected with strong results in most product lines and geographies. We were particularly pleased with the solid performance in all regions. Strong operating leverage drove further gross margin expansion and we are pleased with our excellent growth in operating profit and EPS.”
EPS was $1.49, compared with the prior-year amount of $0.81. Adjusted EPS was $1.55, an increase of 32% over the prior-year amount of $1.17.
Sales were $468.5 million, a 16% increase in local currency sales, compared with $407.4 million in the prior year. Reported sales growth was 15%, which included a negative 1% currency impact. By region, local currency sales increased 10% in Europe, 15% in the Americas and 27% in Asia / Rest of the World. Adjusted operating income amounted to $79.9 million, a 30% increase from the prior-year amount of $61.7 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 $74.8 million, compared with $74.0 million in 2009.

 

 


 

Six-Month Results
EPS was $2.59, compared with the prior-year amount of $1.81. Adjusted EPS was $2.68, a 26% increase over the prior-year amount of $2.12.
Sales were $885.2 million, an 11% increase in local currency sales, compared with $781.5 million in the prior year. Reported sales growth was 13%, which included a 2% currency benefit. By region, local currency sales increased 4% in Europe, 13% in the Americas and 21% in Asia / Rest of the World. Adjusted operating income amounted to $140.4 million, a 23% increase from the prior-year amount of $114.0 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 $119.3 million, compared with $108.9 million in 2009.
Outlook
Based on today’s assessment, management anticipates that local currency sales growth in 2010 will be in the range of 8% to 9% and Adjusted EPS will be in the range of $6.35 to $6.45, an increase of 14% to 16%. This compares with previous guidance of Adjusted EPS in the range of $6.26 to $6.36. Adjusted EPS excludes purchased intangible amortization, discrete tax items, restructuring charges and other one-time items.
For the third quarter 2010, the Company anticipates local currency sales growth to be in the range of 8% to 10% and Adjusted EPS in the range of $1.52 to $1.57, an increase of 12% 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, “We are encouraged by the further improvement in business momentum during the second quarter. Our sales growth is clearly benefiting from the investments in marketing programs, product development and emerging markets distribution that we continued to make during the downturn. Although our current outlook for the third quarter is solid, we remain cautious given the uncertainty in the global economy.”
Other Matters
The Company will host a conference call to discuss its second quarter results today (Thursday, July 22) at 4:30 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 caption “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.

 

 


 

METTLER-TOLEDO INTERNATIONAL INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(amounts in thousands except share data)
(unaudited)
                                 
    Three months ended             Three months ended        
    June 30, 2010     % of sales     June 30, 2009     % of sales  
 
                               
Net sales
  $ 468,549 (a)     100.0     $ 407,442       100.0  
Cost of sales
    221,924       47.4       201,208       49.4  
 
                       
Gross profit
    246,625       52.6       206,234       50.6  
 
                               
Research and development
    23,105       4.9       22,075       5.4  
Selling, general and administrative
    143,602       30.6       122,488       30.1  
Amortization
    3,565       0.8       2,814       0.7  
Interest expense
    4,711       1.0       6,760       1.6  
Restructuring charges
    1,526       0.3       13,979       3.4  
Other charges (income), net
    730       0.2       131       0.1  
 
                       
Earnings before taxes
    69,386       14.8       37,987       9.3  
 
                               
Provision for taxes
    18,039       3.8       10,256       2.5  
 
                       
Net earnings
  $ 51,347       11.0     $ 27,731       6.8  
 
                       
 
                               
Basic earnings per common share:
                               
Net earnings
  $ 1.53             $ 0.82          
Weighted average number of common shares
    33,536,105               33,690,179          
 
                               
Diluted earnings per common share:
                               
Net earnings
  $ 1.49             $ 0.81          
Weighted average number of common and common equivalent shares
    34,395,487               34,192,595          
Note:
     
(a)   Local currency sales increased 16% as compared to the same period in 2009.
RECONCILIATION OF EARNINGS BEFORE TAXES TO ADJUSTED OPERATING INCOME
                                 
    Three months ended             Three months ended        
    June 30, 2010     % of sales     June 30, 2009     % of sales  
 
                               
Earnings before taxes
  $ 69,386             $ 37,987          
Amortization
    3,565               2,814          
Interest expense
    4,711               6,760 (c)        
Restructuring charges
    1,526               13,979          
Other charges (income), net
    730               131          
 
                           
Adjusted operating income
  $ 79,918 (b)     17.1     $ 61,671       15.1  
 
                           
Notes:
     
(b)   Adjusted operating income increased 30% as compared to the same period in 2009.
 
(c)   Includes costs to tender $75 million of the Company’s 4.85% $150 million Senior Notes and other financing-related costs totaling $1.8 million during the three months ended June 30, 2009.

 

 


 

METTLER-TOLEDO INTERNATIONAL INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(amounts in thousands except share data)
(unaudited)
                                 
    Six months ended             Six months ended        
    June 30, 2010     % of sales     June 30, 2009     % of sales  
 
                               
Net sales
  $ 885,200 (a)     100.0     $ 781,521       100.0  
Cost of sales
    420,649       47.5       387,365       49.6  
 
                       
Gross profit
    464,551       52.5       394,156       50.4  
 
                               
Research and development
    45,570       5.2       43,645       5.6  
Selling, general and administrative
    278,616       31.5       236,523       30.3  
Amortization
    6,946       0.8       5,497       0.7  
Interest expense
    9,965       1.1       12,001       1.4  
Restructuring charges
    1,910       0.2       22,334       2.9  
Other charges (income), net
    984       0.1       1,136       0.1  
 
                       
Earnings before taxes
    120,560       13.6       73,020       9.4  
 
                               
Provision for taxes
    31,345       3.5       11,410       1.5  
 
                       
Net earnings
  $ 89,215       10.1     $ 61,610       7.9  
 
                       
 
                               
Basic earnings per common share:
                               
Net earnings
  $ 2.65             $ 1.83          
Weighted average number of common shares
    33,646,640               33,660,699          
 
                               
Diluted earnings per common share:
                               
Net earnings
  $ 2.59             $ 1.81          
Weighted average number of common and common equivalent shares
    34,464,277               34,094,423          
Note:
     
(a)   Local currency sales increased 11% as compared to the same period in 2009.
RECONCILIATION OF EARNINGS BEFORE TAXES TO ADJUSTED OPERATING INCOME
                                 
    Six months ended             Six months ended        
    June 30, 2010     % of sales     June 30, 2009     % of sales  
 
                               
Earnings before taxes
  $ 120,560             $ 73,020          
Amortization
    6,946               5,497          
Interest expense
    9,965               12,001 (c)        
Restructuring charges
    1,910               22,334          
Other charges (income), net
    984               1,136          
 
                           
Adjusted operating income
  $ 140,365 (b)     15.9     $ 113,988       14.6  
 
                         
Notes:
     
(b)   Adjusted operating income increased 23% as compared to the same period in 2009.
 
(c)   Includes costs to tender $75 million of the Company’s 4.85% $150 million Senior Notes and other financing-related costs totaling $1.8 million during the six months ended June 30, 2009.

 

 


 

METTLER-TOLEDO INTERNATIONAL INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(amounts in thousands)
(unaudited)
                 
    June 30, 2010     December 31, 2009  
 
               
Cash and cash equivalents
  $ 111,591     $ 85,031  
Accounts receivable, net
    310,071       312,998  
Inventories
    185,173       168,042  
Other current assets and prepaid expenses
    84,028       80,036  
 
           
Total current assets
    690,863       646,107  
 
               
Property, plant and equipment, net
    302,606       316,334  
Goodwill and other intangibles assets, net
    546,095       546,234  
Other non-current assets
    206,230       210,112  
 
           
Total assets
  $ 1,745,794     $ 1,718,787  
 
           
 
               
Short-term borrowings and maturities of long-term debt
  $ 90,837     $ 89,968  
Trade accounts payable
    110,971       103,160  
Accrued and other current liabilities
    327,165       301,547  
 
           
Total current liabilities
    528,973       494,675  
 
               
Long-term debt
    204,247       203,590  
Other non-current liabilities
    295,382       309,384  
 
           
Total liabilities
    1,028,602       1,007,649  
 
               
Shareholders’ equity
    717,192       711,138  
 
           
Total liabilities and shareholders’ equity
  $ 1,745,794     $ 1,718,787  
 
           

 

 


 

METTLER-TOLEDO INTERNATIONAL INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(amounts in thousands)
(unaudited)
                                 
    Three months ended     Six months ended  
    June 30,     June 30,  
    2010     2009     2010     2009  
 
                               
Cash flow from operating activities:
                               
Net earnings
  $ 51,347     $ 27,731     $ 89,215     $ 61,610  
Adjustments to reconcile net earnings to net cash provided by operating activities:
                               
Depreciation
    7,018       7,304       14,465       14,353  
Amortization
    3,565       2,814       6,946       5,497  
Deferred tax provision
    (2,728 )     (6,935 )     (4,534 )     (10,797 )
Excess tax benefits from share-based payment arrangements
    (1,798 )     (164 )     (2,718 )     (202 )
Other
    3,094       2,984       6,138       5,847  
Increase in cash resulting from changes in operating assets and liabilities
    14,266       40,289       9,746       32,586  
 
                       
Net cash provided by operating activities
    74,764       74,023       119,258       108,894  
 
                       
 
                               
Cash flows from investing activities:
                               
Proceeds from sale of property, plant and equipment
    65       49       102       1,917  
Purchase of property, plant and equipment
    (9,342 )     (11,568 )     (19,803 )     (24,020 )
Acquisitions
    (29 )           (12,557 )     (170 )
 
                       
Net cash used in investing activities
    (9,306 )     (11,519 )     (32,258 )     (22,273 )
 
                       
 
                               
Cash flows from financing activities:
                               
Proceeds from borrowings
    28,292       109,713       52,143       167,905  
Repayments of borrowings
    (27,859 )     (185,191 )     (47,058 )     (217,333 )
Debt issuance costs
          (602 )           (602 )
Debt extinguishment costs
          (1,301 )           (1,301 )
Proceeds from exercise of stock options
    6,379       1,649       9,384       4,609  
Excess tax benefits from share-based payment arrangements
    1,798       164       2,718       202  
Repurchases of common stock
    (43,613 )           (72,794 )      
Other financing activities
    (3,729 )     (758 )     (3,538 )     (1,078 )
 
                       
Net cash used in financing activities
    (38,732 )     (76,326 )     (59,145 )     (47,598 )
 
                       
 
                               
Effect of exchange rate changes on cash and cash equivalents
    (1,018 )     2,778       (1,295 )     2,630  
 
                               
Net increase (decrease) in cash and cash equivalents
    25,708       (11,044 )     26,560       41,653  
 
                               
Cash and cash equivalents:
                               
Beginning of period
    85,883       130,770       85,031       78,073  
 
                       
End of period
  $ 111,591     $ 119,726     $ 111,591     $ 119,726  
 
                       
 
                               
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW
 
                               
Net cash provided by operating activities
  $ 74,764     $ 74,023     $ 119,258     $ 108,894  
Excess tax benefits from share-based payment arrangements
    1,798       164       2,718       202  
Payments in respect of restructuring activities
    2,303       9,738       6,626       14,312  
Proceeds from sale of property, plant and equipment
    65       49       102       1,917  
Purchase of property, plant and equipment
    (9,342 )     (11,568 )     (19,803 )     (24,020 )
 
                       
Free cash flow
  $ 69,588     $ 72,406     $ 108,901     $ 101,305  
 
                       

 

 


 

METTLER-TOLEDO INTERNATIONAL INC.
OTHER OPERATING STATISTICS
SALES GROWTH BY DESTINATION
(unaudited)
                                 
    Europe     Americas     Asia/RoW     Total  
 
                               
U.S. Dollar Sales Growth
                               
Three Months Ended June 30, 2010
    5 %     16 %     30 %     15 %
Six Months Ended June 30, 2010
    5 %     15 %     26 %     13 %
 
                               
Local Currency Sales Growth
                               
Three Months Ended June 30, 2010
    10 %     15 %     27 %     16 %
Six Months Ended June 30, 2010
    4 %     13 %     21 %     11 %
RECONCILIATION OF DILUTED EPS AS REPORTED TO ADJUSTED DILUTED EPS
(unaudited)
                                                 
    Three months ended     Six months ended  
    June 30,     June 30,  
                    %                     %  
    2010     2009     Growth     2010     2009     Growth  
 
                                               
EPS as reported, diluted
  $ 1.49     $ 0.81       84 %   $ 2.59     $ 1.81       43 %
 
                                               
Restructuring charges, net of tax
    0.03   (a)     0.30   (a)             0.04   (a)     0.48   (a)        
Debt extinguishment and financing costs, net of tax
          0.04   (c)                   0.04   (c)        
Purchased intangible amortization, net of tax
    0.03   (b)     0.02   (b)             0.05   (b)     0.04   (b)        
Discrete tax items
                              (0.25 ) (d)        
 
                                       
 
                                               
Adjusted EPS, diluted
  $ 1.55     $ 1.17       32 %   $ 2.68     $ 2.12       26 %
 
                                       
Notes:
     
(a)   Represents the EPS impact of restructuring charges of $1.5 million ($1.1 million after tax) and $14.0 million ($10.2 million after tax) for the three months ended June 30, 2010 and 2009, respectively and $1.9 million ($1.4 million after tax) and $22.3 million ($16.3 million after tax) for the six months ended June 30, 2010 and 2009, respectively, which primarily include severance and lease termination costs.
 
(b)   Represents the EPS impact of purchased intangibles amortization, net of tax, of $0.9 million and $0.7 million for the three months ended June 30, 2010 and 2009, respectively and $1.8 million and $1.3 million for the six months ended June 30, 2010 and 2009, respectively.
 
(c)   Represents the EPS impact of costs to tender $75 million of the Company’s 4.85% $150 million Senior Notes and other financing-related costs totaling $1.8 million ($1.3 million after tax) for both the three and six months ended June 30, 2009.
 
(d)   Discrete tax items for the six months ended June 30, 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.