EX-99.1 2 c16539exv99w1.htm EXHIBIT 99.1 Exhibit 99.1
Exhibit 99.1
FOR IMMEDIATE RELEASE
METTLER-TOLEDO INTERNATIONAL INC. REPORTS
FIRST QUARTER 2011 RESULTS
— Excellent Local Currency Sales Growth —
— Solid Growth in Operating Profit and EPS, Despite Currency Headwinds —
COLUMBUS, Ohio, USA – May 4, 2011 – Mettler-Toledo International Inc. (NYSE: MTD) today announced first quarter results for 2011. Provided below are the highlights:
  •   Sales in local currency increased by 17% in the quarter compared with the prior year. Reported sales growth increased 20%, which includes a 3% benefit from currency.
 
  •   Net earnings per diluted share as reported (EPS) were $1.41, compared with $1.10 in the first quarter of 2010. Adjusted EPS was $1.45, a 28% increase over the prior-year amount of $1.13. 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, “Favorable momentum in our markets continued in the quarter and sales growth was excellent in most product lines and geographic regions. We continue to benefit from the strong execution of our business strategies and had solid growth in operating profit and EPS despite currency headwinds.”
EPS was $1.41, compared with the prior-year amount of $1.10. Adjusted EPS was $1.45, an increase of 28% over the prior-year amount of $1.13.
Sales were $498.8 million, a 17% increase in local currency sales, compared with $416.7 million in the prior year. Reported sales growth was 20%, which included a 3% benefit from currency. By region, local currency sales increased 16% in Europe, 12% in the Americas and 25% in Asia / Rest of World. Adjusted operating income amounted to $73.8 million, a 22% increase from the prior-year amount of $60.4 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 $6.5 million, compared with $44.5 million in the prior year.
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Outlook
The Company updated its outlook for 2011. Based on today’s assessment, management anticipates that local currency sales growth in 2011 will be in the range of 8% to 9% and Adjusted EPS in the range of $7.90 to $8.00, an increase of 14% to 15%. This compares with previous 2011 guidance of Adjusted EPS in the range of $7.70 to $7.80. Adjusted EPS excludes purchased intangible amortization, discrete tax items, restructuring charges and other one-time items.
The Company stated that based on its assessment of market conditions today, management anticipates local currency sales growth in the second quarter 2011 will be in the range of 8% to 9% while Adjusted EPS will be in the range of $1.82 to $1.86, an increase of 17% to 20%.
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 pleased with the strong start to the year. While our growth rate for the remainder of 2011 will be against tougher comparisons, we have the strategies and franchise in place to continue to compete successfully in our markets. Our substantial emerging markets presence, sophisticated marketing programs and strong product pipeline position us well for growth. While uncertainty remains in the global economy, I am confident in our ability to continue to execute on our strategies.”
Other Matters
The Company will host a conference call to discuss its quarterly results today (Wednesday, May 4) 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 has strong leadership positions in all businesses and believes it holds global number-one market positions in a majority of them. Specifically, METTLER TOLEDO is the largest provider of weighing instruments for use in laboratory, industrial and food retailing applications. The Company is also a leading provider in analytical instruments for use in life science, reaction engineering and real-time analytic systems used in drug and chemical compound development and process analytics instruments used for in-line measurement in production processes. In addition, METTLER TOLEDO is the largest supplier of end-of-line inspection systems used in production and packaging for food, pharmaceutical and other industries. Additional information about METTLER TOLEDO can be found at www.mt.com/investors.
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, 2011     % of sales     March 31, 2010     % of sales  
 
                                
Net sales
   $ 498,766 (a)     100.0     $ 416,651 (a)     100.0  
Cost of sales
     237,259       47.6       198,725       47.7  
 
                        
Gross profit
     261,507       52.4       217,926       52.3  
 
                                
Research and development
     26,351       5.3       22,465       5.4  
Selling, general and administrative
     161,378       32.4       135,014       32.4  
Amortization
     3,622       0.7       3,381       0.8  
Interest expense
     5,711       1.1       5,254       1.3  
Restructuring charges
     498       0.1       384       0.1  
Other charges (income), net
     669       0.1       254       —  
 
                        
Earnings before taxes
     63,278       12.7       51,174       12.3  
 
                                
Provision for taxes
     16,451       3.3       13,306       3.2  
 
                        
Net earnings
   $ 46,827       9.4     $ 37,868       9.1  
 
                        
 
                                
Basic earnings per common share:
                                
Net earnings
   $ 1.45             $ 1.12          
Weighted average number of common shares
     32,290,595               33,757,175          
 
                                
Diluted earnings per common share:
                                
Net earnings
   $ 1.41             $ 1.10          
Weighted average number of common and common equivalent shares
     33,291,632               34,533,067          
Note:
(a) Local currency sales increased 17% as compared to the same period in 2010.
RECONCILIATION OF EARNINGS BEFORE TAXES TO ADJUSTED OPERATING INCOME
                                 
    Three months ended             Three months ended        
    March 31, 2011     % of sales     March 31, 2010     % of sales  
Earnings before taxes
   $ 63,278             $ 51,174          
Amortization
     3,622               3,381          
Interest expense
     5,711               5,254          
Restructuring charges
     498               384          
Other charges (income), net
     669               254          
 
                            
Adjusted operating income
   $ 73,778 (b)     14.8     $ 60,447 (b)     14.5  
 
                            
Note:
(b) Adjusted operating income increased 22% as compared to the same period in 2010.
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METTLER-TOLEDO INTERNATIONAL INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(amounts in thousands)
(unaudited)
                 
    March 31, 2011     December 31, 2010  
 
                
Cash and cash equivalents
   $ 388,102     $ 447,577  
Accounts receivable, net
     365,578       368,936  
Inventories
     247,190       217,104  
Other current assets and prepaid expenses
     116,327       111,278  
 
            
Total current assets
     1,117,197       1,144,895  
 
                
Property, plant and equipment, net
     380,743       364,472  
Goodwill and other intangibles assets, net
     557,404       539,071  
Other non-current assets
     243,502       234,625  
 
            
Total assets
   $ 2,298,846     $ 2,283,063  
 
            
 
                
Short-term borrowings and maturities of long-term debt
   $ 22,583     $ 10,902  
Trade accounts payable
     134,257       138,105  
Accrued and other current liabilities
     367,573       393,179  
 
            
Total current liabilities
     524,413       542,186  
 
                
Long-term debt
     677,833       670,301  
Other non-current liabilities
     307,623       298,992  
 
            
Total liabilities
     1,509,869       1,511,479  
 
                
Shareholders’ equity
     788,977       771,584  
 
            
Total liabilities and shareholders’ equity
   $ 2,298,846     $ 2,283,063  
 
            
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METTLER-TOLEDO INTERNATIONAL INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(amounts in thousands)
(unaudited)
                 
    Three months ended  
    March 31,  
    2011     2010  
 
Cash flow from operating activities:
                
Net earnings
   $ 46,827     $ 37,868  
Adjustments to reconcile net earnings to net cash provided by operating activities:
                
Depreciation
     7,383       7,447  
Amortization
     3,622       3,381  
Deferred tax provision
     (6,593 )     (1,806 )
Excess tax benefits from share-based payment arrangements
     (2,347 )     (920 )
Other
     3,160       3,044  
Decrease in cash resulting from changes in operating assets and liabilities (a)
     (45,528 )     (4,520 )
 
            
Net cash provided by operating activities (a)
     6,524       44,494  
 
            
 
Cash flows from investing activities:
                
Proceeds from sale of property, plant and equipment
     48       37  
Purchase of property, plant and equipment
     (17,559 )     (10,461 )
Acquisitions
     (14,532 )     (12,528 )
Other investing activities
     (902 )        
 
            
Net cash used in investing activities
     (32,945 )     (22,952 )
 
            
 
Cash flows from financing activities:
                
Proceeds from borrowings
     28,784       23,851  
Repayments of borrowings
     (11,488 )     (19,199 )
Proceeds from exercise of stock options
     3,063       3,005  
Excess tax benefits from share-based payment arrangements
     2,347       920  
Repurchases of common stock
     (57,179 )     (29,181 )
Other financing activities
     (87 )     191  
 
            
Net cash used in financing activities
     (34,560 )     (20,413 )
 
            
 
Effect of exchange rate changes on cash and cash equivalents
     1,506       (277 )
 
Net (decrease) increase in cash and cash equivalents
     (59,475 )     852  
 
Cash and cash equivalents:
                
Beginning of period
     447,577       85,031  
 
            
End of period
   $ 388,102     $ 85,883  
 
            
Note:
     
(a)   The decrease in 2011 resulted principally from approximately $39 million of higher payments relating to previous year performance-related compensation incentives.
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW
                 
Net cash provided by operating activities
   $ 6,524     $ 44,494  
Excess tax benefits from share-based payment arrangements
     2,347       920  
Payments in respect of restructuring activities
     1,413       4,323  
Proceeds from sale of property, plant and equipment
     48       37  
Purchase of property, plant and equipment
     (17,559 )     (10,461 )
 
            
Free cash flow
     ($7,227 )   $ 39,313  
 
            
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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 March 31, 2011
     18 %     13 %     32 %     20 %
 
                                
Local Currency Sales Growth
                               
Three Months Ended March 31, 2011
     16 %     12 %     25 %     17 %
RECONCILIATION OF DILUTED EPS AS REPORTED TO ADJUSTED DILUTED EPS
(unaudited)
                         
    Three months ended  
    March 31,  
                    %  
    2011     2010     Growth  
 
                        
EPS as reported, diluted
   $ 1.41     $ 1.10       28 %
 
                        
Restructuring charges, net of tax
     0.01 (a)     —          
Purchased intangible amortization, net of tax
     0.03 (b)     0.03 (b)        
 
                    
 
                        
Adjusted EPS, diluted
   $ 1.45     $ 1.13       28 %
 
                    
Notes:
     
(a)   Represents the EPS impact of restructuring charges of $0.5 million ($0.4 million after tax) for the three months ended March 31, 2011 which primarily include severance costs.
 
(b)   Represents the EPS impact of purchased intangibles amortization, net of tax, of $0.9 million for the three month periods ended March 31, 2011 and 2010, respectively.
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