Delaware | File No. 001-13595 | 13-3668641 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) | (IRS Employer Identification No.) |
1900 Polaris Parkway Columbus, OH and Im Langacher, P.O. Box MT-100 CH Greifensee, Switzerland |
43240 and 8606 | |
(Address of principal executive offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
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| It does not include interest expense. Because Mettler-Toledo has borrowed money to finance some of its operations, interest is a necessary and ongoing part of its costs and has assisted Mettler-Toledo in generating revenue. Therefore any measure that excludes interest expense has material limitations. |
| It excludes amortization expense. Because this item is recurring, any measure that excludes amortization expense has material limitations. |
| It excludes other charges (income), net. Because other charges (income), net is a component of operating income under U.S. GAAP, any measure that excludes other charges (income), net, has material limitations. |
| It excludes restructuring charges. Because restructuring charges are a component of operating income under U.S. GAAP, any measure that excludes restructuring charges, has material limitations. |
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| It includes proceeds from the sale of property, plant and equipment and purchases of property, plant and equipment, which are not considered to be components of net cash provided by operating activities under U.S. GAAP. Therefore any measure that includes proceeds from the sale of property, plant and equipment and purchases of property, plant and equipment has material limitations. |
| It excludes restructuring payments and excess tax benefits from share-based payment arrangements, which are considered to be components of net cash provided by operating activities under U.S. GAAP. Therefore any measure that excludes these items has material limitations. |
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Exhibit No. | Description | |||
99.1 | Press release, dated November 3, 2011 issued by Mettler-Toledo International Inc. |
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METTLER-TOLEDO INTERNATIONAL INC. | ||||||
Dated: November 3, 2011
|
By: | /s/ William P. Donnelly
|
||||
Chief Financial Officer |
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| Sales in local currency increased by 15% in the quarter compared with the prior year. Reported sales increased 23%, which includes an 8% benefit from currency. |
| Net earnings per diluted share as reported (EPS) were $2.09, compared with $1.82 in the third quarter of 2010. Adjusted EPS was $2.01, an 18% increase over the prior-year amount of $1.71. 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. |
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Three months ended | Three months ended | |||||||||||||||
September 30, 2011 | % of sales | September 30, 2010 | % of sales | |||||||||||||
Net sales |
$ | 601,114 | (a) | 100.0 | $ | 490,213 | 100.0 | |||||||||
Cost of sales |
286,697 | 47.7 | 234,158 | 47.8 | ||||||||||||
Gross profit |
314,417 | 52.3 | 256,055 | 52.2 | ||||||||||||
Research and development |
30,068 | 5.0 | 24,992 | 5.1 | ||||||||||||
Selling, general and administrative |
185,832 | 30.9 | 145,303 | 29.6 | ||||||||||||
Amortization |
4,795 | 0.8 | 3,667 | 0.7 | ||||||||||||
Interest expense |
5,893 | 1.0 | 4,792 | 1.0 | ||||||||||||
Restructuring charges |
362 | 0.0 | 566 | 0.1 | ||||||||||||
Other charges (income), net |
409 | 0.1 | (127 | ) | 0.0 | |||||||||||
Earnings before taxes |
87,058 | 14.5 | 76,862 | 15.7 | ||||||||||||
Provision for taxes |
18,862 | 3.1 | 14,781 | 3.0 | ||||||||||||
Net earnings |
$ | 68,196 | 11.4 | $ | 62,081 | 12.7 | ||||||||||
Basic earnings per common share: |
||||||||||||||||
Net earnings |
$ | 2.15 | $ | 1.87 | ||||||||||||
Weighted average number of common
shares |
31,760,270 | 33,171,017 | ||||||||||||||
Diluted earnings per common share: |
||||||||||||||||
Net earnings |
$ | 2.09 | $ | 1.82 | ||||||||||||
Weighted average number of common
and common equivalent shares |
32,664,482 | 34,027,191 |
(a) | Local currency sales increased 15% as compared to the same period in 2010. |
Three months ended | Three months ended | |||||||||||||||
September 30, 2011 | % of sales | September 30, 2010 | % of sales | |||||||||||||
Earnings before taxes |
$ | 87,058 | $ | 76,862 | ||||||||||||
Amortization |
4,795 | 3,667 | ||||||||||||||
Interest expense |
5,893 | 4,792 | ||||||||||||||
Restructuring charges |
362 | 566 | ||||||||||||||
Other charges (income),
net |
409 | (127 | ) | |||||||||||||
Adjusted operating income |
$ | 98,517 | (b) | 16.4 | $ | 85,760 | 17.5 | |||||||||
(b) | Adjusted operating income increased 15% as compared to the same period in 2010. |
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Nine months ended | Nine months ended | |||||||||||||||
September 30, 2011 | % of sales | September 30, 2010 | % of sales | |||||||||||||
Net sales |
$ | 1,660,968 | (a) | 100.0 | $ | 1,375,413 | 100.0 | |||||||||
Cost of sales |
788,853 | 47.5 | 654,807 | 47.6 | ||||||||||||
Gross profit |
872,115 | 52.5 | 720,606 | 52.4 | ||||||||||||
Research and development |
86,024 | 5.2 | 70,562 | 5.1 | ||||||||||||
Selling, general and administrative |
519,264 | 31.3 | 423,919 | 30.8 | ||||||||||||
Amortization |
12,742 | 0.8 | 10,613 | 0.8 | ||||||||||||
Interest expense |
17,296 | 1.0 | 14,757 | 1.1 | ||||||||||||
Restructuring charges |
2,831 | 0.2 | 2,476 | 0.2 | ||||||||||||
Other charges (income), net |
2,285 | 0.1 | 857 | 0.0 | ||||||||||||
Earnings before taxes |
231,673 | 13.9 | 197,422 | 14.4 | ||||||||||||
Provision for taxes |
56,462 | 3.4 | 46,126 | 3.4 | ||||||||||||
Net earnings |
$ | 175,211 | 10.5 | $ | 151,296 | 11.0 | ||||||||||
Basic earnings per common share: |
||||||||||||||||
Net earnings |
$ | 5.47 | $ | 4.52 | ||||||||||||
Weighted average number of common
shares |
32,016,238 | 33,488,099 | ||||||||||||||
Diluted earnings per common share: |
||||||||||||||||
Net earnings |
$ | 5.31 | $ | 4.41 | ||||||||||||
Weighted average number of common
and common equivalent shares |
32,990,000 | 34,318,582 |
(a) | Local currency sales increased 14% compared to the same period in 2010. |
Nine months ended | Nine months ended | |||||||||||||||
September 30, 2011 | % of sales | September 30, 2010 | % of sales | |||||||||||||
Earnings before taxes |
$ | 231,673 | $ | 197,422 | ||||||||||||
Amortization |
12,742 | 10,613 | ||||||||||||||
Interest expense |
17,296 | 14,757 | ||||||||||||||
Restructuring charges |
2,831 | 2,476 | ||||||||||||||
Other charges (income),
net |
2,285 | 857 | ||||||||||||||
Adjusted operating income |
$ | 266,827 | (b) | 16.1 | $ | 226,125 | 16.4 | |||||||||
(b) | Adjusted operating income increased 18% compared to the same period in 2010. |
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September 30, 2011 | December 31, 2010 | |||||||
Cash and cash equivalents |
$ | 262,473 | $ | 447,577 | ||||
Accounts receivable, net |
398,402 | 368,936 | ||||||
Inventories |
265,351 | 217,104 | ||||||
Other current assets and prepaid expenses |
126,920 | 111,278 | ||||||
Total current assets |
1,053,146 | 1,144,895 | ||||||
Property, plant and equipment, net |
408,156 | 364,472 | ||||||
Goodwill and other intangibles assets, net |
576,065 | 539,071 | ||||||
Other non-current assets |
258,070 | 234,625 | ||||||
Total assets |
$ | 2,295,437 | $ | 2,283,063 | ||||
Short-term borrowings and maturities of
long-term debt |
$ | 31,143 | $ | 10,902 | ||||
Trade accounts payable |
167,919 | 138,105 | ||||||
Accrued and other current liabilities |
418,221 | 393,179 | ||||||
Total current liabilities |
617,283 | 542,186 | ||||||
Long-term debt |
550,554 | 670,301 | ||||||
Other non-current liabilities |
308,191 | 298,992 | ||||||
Total liabilities |
1,476,028 | 1,511,479 | ||||||
Shareholders equity |
819,409 | 771,584 | ||||||
Total liabilities and shareholders equity |
$ | 2,295,437 | $ | 2,283,063 | ||||
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Three months ended | Nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Cash flow from operating activities: |
||||||||||||||||
Net earnings |
$ | 68,196 | $ | 62,081 | $ | 175,211 | $ | 151,296 | ||||||||
Adjustments to reconcile net earnings to
net cash provided by operating activities: |
||||||||||||||||
Depreciation |
8,516 | 7,796 | 23,370 | 22,261 | ||||||||||||
Amortization |
4,795 | 3,667 | 12,742 | 10,613 | ||||||||||||
Deferred tax provision |
(1,695 | ) | (2,858 | ) | (9,753 | ) | (7,392 | ) | ||||||||
Excess tax benefits from share-based payment arrangements |
(1,328 | ) | (692 | ) | (6,259 | ) | (3,410 | ) | ||||||||
Other |
3,054 | 3,059 | 8,261 | 9,197 | ||||||||||||
Increase (decrease) in cash resulting from changes in
operating assets and liabilities |
2,573 | 12,959 | (25,908 | ) | 22,705 | |||||||||||
Net cash provided by operating activities |
84,111 | 86,012 | 177,664 | 205,270 | ||||||||||||
Cash flows from investing activities: |
||||||||||||||||
Proceeds from sale of property, plant and equipment |
100 | 55 | 2,402 | 157 | ||||||||||||
Purchase of property, plant and equipment |
(23,989 | ) | (18,761 | ) | (64,506 | ) | (38,564 | ) | ||||||||
Acquisitions |
(19,199 | ) | | (34,662 | ) | (12,557 | ) | |||||||||
Other investing activities |
(21 | ) | | (903 | ) | | ||||||||||
Net cash used in investing activities |
(43,109 | ) | (18,706 | ) | (97,669 | ) | (50,964 | ) | ||||||||
Cash flows from financing activities: |
||||||||||||||||
Proceeds from borrowings |
19,550 | 41,554 | 65,993 | 93,697 | ||||||||||||
Repayments of borrowings |
(66,526 | ) | (5,057 | ) | (170,726 | ) | (52,115 | ) | ||||||||
Proceeds from exercise of stock options |
4,606 | 2,860 | 11,189 | 12,244 | ||||||||||||
Excess tax benefits from share-based payment arrangements |
1,328 | 692 | 6,259 | 3,410 | ||||||||||||
Repurchases of common stock |
(57,000 | ) | (76,000 | ) | (171,179 | ) | (148,794 | ) | ||||||||
Acquisition contingent consideration paid |
(7,750 | ) | | (7,750 | ) | | ||||||||||
Other financing activities |
(178 | ) | (3,403 | ) | (111 | ) | (6,941 | ) | ||||||||
Net cash used in financing activities |
(105,970 | ) | (39,354 | ) | (266,325 | ) | (98,499 | ) | ||||||||
Effect of exchange rate changes on cash and cash equivalents |
(1,322 | ) | 3,341 | 1,226 | 2,046 | |||||||||||
Net (decrease) increase in cash and cash equivalents |
(66,290 | ) | 31,293 | (185,104 | ) | 57,853 | ||||||||||
Cash and cash equivalents: |
||||||||||||||||
Beginning of period |
328,763 | 111,591 | 447,577 | 85,031 | ||||||||||||
End of period |
$ | 262,473 | $ | 142,884 | $ | 262,473 | $ | 142,884 | ||||||||
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW |
||||||||||||||||
Net cash provided by operating activities |
$ | 84,111 | $ | 86,012 | $ | 177,664 | $ | 205,270 | ||||||||
Excess tax benefits from share-based payment arrangements |
1,328 | 692 | 6,259 | 3,410 | ||||||||||||
Payments in respect of restructuring activities |
1,265 | 2,257 | 4,103 | 8,883 | ||||||||||||
Proceeds from sale of property, plant and equipment |
100 | 55 | 2,402 | 157 | ||||||||||||
Purchase of property, plant and equipment |
(23,989 | ) | (18,761 | ) | (64,506 | ) | (38,564 | ) | ||||||||
Free cash flow |
$ | 62,815 | $ | 70,255 | $ | 125,922 | $ | 179,156 | ||||||||
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Europe | Americas | Asia/RoW | Total | |||||||||||||
U.S. Dollar Sales Growth |
||||||||||||||||
Three Months Ended
September 30, 2011 |
28 | % | 11 | % | 30 | % | 23 | % | ||||||||
Nine Months Ended
September 30, 2011 |
24 | % | 11 | % | 29 | % | 21 | % | ||||||||
Local Currency Sales Growth |
||||||||||||||||
Three Months Ended
September 30, 2011 |
16 | % | 10 | % | 21 | % | 15 | % | ||||||||
Nine Months Ended
September 30, 2011 |
14 | % | 10 | % | 21 | % | 14 | % |
Three months ended | Nine months ended | |||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||
% | % | |||||||||||||||||||||||
2011 | 2010 | Growth | 2011 | 2010 | Growth | |||||||||||||||||||
EPS as reported, diluted |
$ | 2.09 | $ | 1.82 | 15 | % | $ | 5.31 | $ | 4.41 | 20 | % | ||||||||||||
Restructuring charges, net of tax |
0.01 | (a) | 0.01 | (a) | 0.06 | (a) | 0.05 | (a) | ||||||||||||||||
Purchased intangible
amortization, net of tax |
0.03 | (b) | 0.03 | (b) | 0.09 | (b) | 0.08 | (b) | ||||||||||||||||
Discrete tax items |
(0.12 | )(c) | (0.15 | )(c) | (0.11 | )(c) | (0.15 | )(c) | ||||||||||||||||
Adjusted EPS, diluted |
$ | 2.01 | $ | 1.71 | 18 | % | $ | 5.35 | $ | 4.39 | 22 | % | ||||||||||||
(a) | Represents the EPS impact of restructuring charges of $0.4 million ($0.3 million after tax) and $0.6 million ($0.4 million after tax) for the three months ended September 30, 2011 and 2010, respectively and $2.8 million ($2.1 million after tax) and $2.5 million ($1.8 million after tax) for the nine months ended September 30, 2011 and 2010, respectively. | |
(b) | Represents the EPS impact of purchased intangibles amortization, net of tax, of $1.1 million and $0.9 million for the three months ended September 30, 2011 and 2010, respectively and $2.9 million and $2.7 million for the nine months ended September 30, 2011 and 2010, respectively. | |
(c) | Represents the EPS impact of discrete tax items of $3.8 million and $5.2 million for the three months and nine months ended September 30, 2011 and 2010, respectively primarily related to the favorable resolution of certain prior year tax matters. |
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