EX-99.1 2 c76870exv99w1.htm EXHIBIT 99.1 Filed by Bowne Pure Compliance
Exhibit 99.1
METTLER-TOLEDO INTERNATIONAL INC. REPORTS
THIRD QUARTER 2008 RESULTS
— Strong Local Currency Sales Growth —
— Solid Earnings Growth —
COLUMBUS, Ohio, USA — November 6, 2008 — Mettler-Toledo International Inc. (NYSE: MTD) today announced third quarter results for 2008. Provided below are the highlights:
    Sales growth in local currency was 10%. Reported sales growth was 15%, which included a 5% currency benefit.
    Net earnings per diluted share as reported (EPS) were $1.52, compared with $1.16 in the third quarter of 2007. Adjusted EPS was $1.44, an increase of 25% over the prior year amount of $1.15. Adjusted EPS is a non-GAAP measure, and a reconciliation to EPS is provided on the last page of the attached schedules.
    Projected EPS is estimated at $5.83 to $5.85 for 2008 and $6.12 to $6.32 for 2009. Projected Adjusted EPS is estimated at $5.74 to $5.76 for 2008 and $6.20 to $6.40 for 2009.
Third Quarter Results
Olivier Filliol, President and Chief Executive Officer, stated, “We are very pleased with our strong operating results in the third quarter. Local currency sales growth was broad-based across most geographies and product lines. We continue to benefit from our considerable presence in emerging markets, our innovative sales and marketing programs and our new product launches. Operating profit and EPS growth were also strong in the quarter.”
EPS was $1.52, compared with the prior year amount of $1.16. Adjusted EPS was $1.44, an increase of 25% over the prior year amount of $1.15.
Sales were $509.1 million, compared with $442.6 million in the prior year, an increase of 10% in local currency sales. Reported sales growth was 15%, which included a 5% currency benefit. By region, local currency sales growth was 9% in Europe, 4% in the Americas and 21% in Asia / Rest of World. Adjusted operating income amounted to $76.5 million, a 15% increase over the prior year amount of $66.8 million.
Cash flow from operations was $76.1 million, compared with $76.2 million in 2007. The Company repurchased 681,600 shares of its stock for $69.5 million during the quarter.

 

 


 

Nine-Month Results
EPS was $3.96, compared with the prior year amount of $3.01. Adjusted EPS was $3.85, an increase of 27% over the prior year amount of $3.03.
Sales were $1.464 billion, compared with $1.261 billion in the prior year, an increase of 9% in local currency sales. Reported sales growth was 16%, which included a 7% currency benefit. By region, local currency sales growth was 8% in Europe, 3% in the Americas and 21% in Asia / Rest of World. Adjusted operating income amounted to $210.0 million, a 17% increase over the prior year amount of $179.3 million.
Cash flow from operations was $160.9 million, compared with $169.1 million in 2007. The Company repurchased 2.2 million shares of its stock for $223.4 million during the period.
Outlook 2008 / 2009
The Company stated that greater uncertainty in the global economy today makes forecasting particularly challenging. The guidance for fourth quarter 2008 and full year 2009, as detailed below, is based on management’s current assessment of the outlook for their end markets and the global economy.
EPS in the fourth quarter of 2008 is expected to be in the range of $1.88 to $1.90, which results in an estimate of EPS for the full year 2008 in the range of $5.83 to $5.85.
Adjusted EPS for the fourth quarter 2008 is expected to be in the range of $1.90 to $1.92. For the full year 2008, Adjusted EPS is expected to be in the range of $5.74 to $5.76. This compares with previous full year guidance of $5.53 to $5.63 and represents a 21% to 22% increase over 2007 Adjusted EPS of $4.74. Adjusted EPS excludes the after-tax amortization of purchased intangibles and discrete tax items.
For 2009, the Company expects local currency sales growth to be in the range of 2% to 4%. This would result in 2009 EPS of $6.12 to $6.32. Adjusted 2009 EPS is estimated to be in the range of $6.20 to $6.40. Using the mid-points of 2009 and 2008 Adjusted EPS, this represents an increase of approximately 10%. Purchased intangibles amortization in 2009 is estimated at $0.08 and is excluded from Adjusted EPS.
Conclusion
Filliol concluded, “Mettler-Toledo is a high-quality franchise built on market-leading positions, a strong global presence, a track record of innovation and a culture of execution. We benefit from our diversification in terms of products, geographies, industry segments and customers. As we look to 2009, we are concerned about the impact of a potential economic slowdown in our markets. In anticipation of a possible slowdown, we are taking extra efforts to ensure sales resources are allocated to the markets with highest-growth potential and undertaking measures to contain expense growth. We will continue to closely monitor conditions and adapt our plans accordingly. Despite these uncertainties, we remain confident in our ability to execute and, based on our current assessment of the outlook for our end markets, believe we can again generate solid earnings growth in 2009.”

 

 


 

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 third quarter results today (Thursday, November 6) 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.

 

 


 

METTLER-TOLEDO INTERNATIONAL INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(amounts in thousands except share data)
(unaudited)
                                 
    Three months ended             Three months ended        
    September 30, 2008     % of sales     September 30, 2007     % of sales  
 
                               
Net sales
  $ 509,097 (a)     100.0     $ 442,600       100.0  
Cost of sales
    260,417       51.2       223,591       50.5  
 
                       
Gross profit
    248,680       48.8       219,009       49.5  
 
                               
Research and development
    26,553       5.2       22,699       5.1  
Selling, general and administrative
    145,612       28.6       129,520       29.3  
Amortization
    2,728       0.5       2,825       0.6  
Interest expense
    6,846       1.3       5,515       1.3  
Other charges, net
    445       0.1       58       0.0  
 
                       
Earnings before taxes
    66,496       13.1       58,392       13.2  
 
                               
Provision for taxes
    13,772       2.7       14,620       3.3  
 
                       
Net earnings
  $ 52,724       10.4     $ 43,772       9.9  
 
                       
 
                               
Basic earnings per common share:
                               
Net earnings
  $ 1.56             $ 1.19          
Weighted average number of common shares
    33,856,574               36,650,215          
 
                               
Diluted earnings per common share:
                               
Net earnings
  $ 1.52             $ 1.16          
Weighted average number of common and common equivalent shares
    34,727,806               37,597,020          
Note:
(a)   Local currency sales increased 10% as compared to the same period in 2007.
RECONCILIATION OF EARNINGS BEFORE TAXES TO ADJUSTED OPERATING INCOME
                                 
    Three months ended             Three months ended        
    September 30, 2008     % of sales     September 30, 2007     % of sales  
 
                               
Earnings before taxes
  $ 66,496             $ 58,392          
Amortization
    2,728               2,825          
Interest expense
    6,846               5,515          
Other charges, net
    445               58          
 
                           
Adjusted operating income
  $ 76,515 (a)     15.0     $ 66,790       15.1  
 
                           
Note:
(a)   Adjusted operating income increased 15% as compared to the same period in 2007.

 

 


 

METTLER-TOLEDO INTERNATIONAL INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(amounts in thousands except share data)
(unaudited)
                                 
    Nine months ended             Nine months ended        
    September 30, 2008     % of sales     September 30, 2007     % of sales  
 
                               
Net sales
  $ 1,463,657 (a)     100.0     $ 1,260,907       100.0  
Cost of sales
    734,814       50.2       635,328       50.4  
 
                       
Gross profit
    728,843       49.8       625,579       49.6  
 
                               
Research and development
    77,511       5.3       66,489       5.3  
Selling, general and administrative
    441,311       30.1       379,810       30.1  
Amortization
    7,800       0.5       8,708       0.7  
Interest expense
    18,723       1.3       14,977       1.2  
Other charges (income), net
    2,620       0.2       (688 )     (0.1 )
 
                       
Earnings before taxes
    180,878       12.4       156,283       12.4  
 
                               
Provision for taxes
    41,024       2.8       41,050       3.3  
 
                       
Net earnings
  $ 139,854       9.6     $ 115,233       9.1  
 
                       
 
                               
Basic earnings per common share:
                               
Net earnings
  $ 4.06             $ 3.08          
Weighted average number of common shares
    34,482,431               37,390,019          
 
                               
Diluted earnings per common share:
                               
Net earnings
  $ 3.96             $ 3.01          
Weighted average number of common and common equivalent shares
    35,347,440               38,312,676          
Note:
(a)   Local currency sales increased 9% as compared to the same period in 2007.
RECONCILIATION OF EARNINGS BEFORE TAXES TO ADJUSTED OPERATING INCOME
                                 
    Nine months ended             Nine months ended        
    September 30, 2008     % of sales     September 30, 2007     % of sales  
 
                               
Earnings before taxes
  $ 180,878             $ 156,283          
Amortization
    7,800               8,708          
Interest expense
    18,723               14,977          
Other charges (income), net
    2,620               (688 )        
 
                           
Adjusted operating income
  $ 210,021 (a)     14.3     $ 179,280       14.2  
 
                           
Note:
(a)   Adjusted operating income increased 17% as compared to the same period in 2007.

 

 


 

METTLER-TOLEDO INTERNATIONAL INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(amounts in thousands)
(unaudited)
                 
    September 30, 2008     December 31, 2007  
 
               
Cash and cash equivalents
  $ 111,039     $ 81,222  
Accounts receivable, net
    340,481       354,596  
Inventory
    194,271       173,725  
Other current assets and prepaid expenses
    86,363       73,666  
 
           
Total current assets
    732,154       683,209  
 
               
Property, plant and equipment, net
    267,636       265,665  
Goodwill and other intangibles
    534,868       540,787  
Other non-current assets
    209,108       188,553  
 
           
Total assets
  $ 1,743,766     $ 1,678,214  
 
           
 
               
Short-term debt
  $ 24,048     $ 11,570  
Accounts payable
    107,059       127,109  
Accrued and other current liabilities
    341,207       309,094  
 
           
Total current liabilities
    472,314       447,773  
 
               
Long-term debt
    495,632       385,072  
Other non-current liabilities
    265,223       264,083  
 
           
Total liabilities
    1,233,169       1,096,928  
 
               
Shareholders’ equity
    510,597       581,286  
 
           
Total liabilities and shareholders’ equity
  $ 1,743,766     $ 1,678,214  
 
           

 

 


 

METTLER-TOLEDO INTERNATIONAL INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(amounts in thousands)
(unaudited)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 
    Three months ended     Nine months ended  
    September 30,     September 30,  
    2008     2007     2008     2007  
 
                               
Cash flow from operating activities:
                               
Net earnings
  $ 52,724     $ 43,772     $ 139,854     $ 115,233  
Adjustments to reconcile net earnings to net cash provided by operating activities:
                               
Depreciation
    7,200       6,584       22,194       19,501  
Amortization
    2,728       2,825       7,800       8,708  
Deferred taxation
    (1,702 )     (2,353 )     (7,957 )     (6,654 )
Excess tax benefits from share-based payment arrangements
    (320 )     (580 )     (999 )     (5,223 )
Other
    2,114       1,286       4,107       5,530  
Increase in cash resulting from changes in operating assets and liabilities (a)
    13,335       24,669       (4,131 )     31,991  
 
                       
Net cash provided by operating activities (a)
    76,079       76,203       160,868       169,086  
 
                       
 
                               
Cash flows from investing activities:
                               
Proceeds from sale of property, plant and equipment
    536       2,252       13,184       3,398  
Purchase of property, plant and equipment
    (17,250 )     (8,529 )     (37,460 )     (24,826 )
Acquisitions
    (303 )     (106 )     (607 )     (106 )
 
                       
Net cash used in investing activities
    (17,017 )     (6,383 )     (24,883 )     (21,534 )
 
                       
 
                               
Cash flows from financing activities:
                               
Proceeds from borrowings
    66,575       85,707       235,710       104,312  
Repayments of borrowings
    (27,151 )     (74,833 )     (121,123 )     (95,014 )
Proceeds from stock option exercises
    864       1,076       3,319       11,530  
Excess tax benefits from share-based payment arrangements
    320       580       999       5,223  
Repurchases of common stock
    (69,071 )     (108,603 )     (225,296 )     (254,506 )
Refinancing fees
    (3,085 )           (3,085 )      
 
                       
Net cash used in financing activities
    (31,548 )     (96,073 )     (109,476 )     (228,455 )
 
                       
 
                               
Effect of exchange rate changes on cash and cash equivalents
    (1,999 )     1,931       3,308       5,019  
 
                               
Net increase (decrease) in cash and cash equivalents
    25,515       (24,322 )     29,817       (75,884 )
 
                               
Cash and cash equivalents:
                               
Beginning of period
    85,524       99,707       81,222       151,269  
 
                       
End of period
  $ 111,039     $ 75,385     $ 111,039     $ 75,385  
 
                       
Note:
(a)   The decrease for the nine months ended September 30, 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 $24.4 million and the timing of tax disbursements of $5.9 million, offset in part by higher net earnings of $24.6 million 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
  $ 76,079     $ 76,203     $ 160,868     $ 169,086  
Excess tax benefits from share-based payment arrangements
    320       580       999       5,223  
Proceeds from sale of property, plant and equipment
    536       2,252       13,184       3,398  
Purchase of property, plant and equipment
    (17,250 )     (8,529 )     (37,460 )     (24,826 )
 
                       
Free cash flow (a)
  $ 59,685     $ 70,506     $ 137,591     $ 152,881  
 
                       

 

 


 

METTLER-TOLEDO INTERNATIONAL INC.
OTHER OPERATING STATISTICS
LOCAL CURRENCY SALES GROWTH BY DESTINATION
                                 
    Europe     Americas     Asia/RoW     Total  
Three Months Ended September 30, 2008
    9 %     4 %     21 %     10 %
Nine Months Ended September 30, 2008
    8 %     3 %     21 %     9 %
RECONCILIATION OF DILUTED EPS AS REPORTED TO ADJUSTED DILUTED EPS
(unaudited)
                                                 
    Three months ended     Nine months ended  
    September 30,     September 30,  
                %                 %  
    2008     2007     Growth     2008     2007     Growth  
EPS as reported, diluted
  $ 1.52     $ 1.16       31 %   $ 3.96     $ 3.01       32 %
 
                                               
Discrete tax items
    (0.10 ) (a)     (0.03 ) (b)             (0.17 ) (a)     (0.03 ) (b)        
Purchased intangible amortization
    0.02
(c)
    0.02
(c)
            0.06
(c)
    0.05
(c)
       
 
                                       
 
                                               
Adjusted EPS, diluted
  $ 1.44     $ 1.15       25 %   $ 3.85     $ 3.03       27 %
 
                                       
Notes:
(a)   Discrete tax items in the three months ended September 30, 2008 of $3.5 million relate primarily to a benefit from the closure of certain tax matters. The nine months ended September 30, 2008 includes an additional $2.5 million discrete tax item related to a favorable tax law change.
 
(b)   Discrete tax items in 2007 pertain to the EPS impact of tax benefits related to the favorable resolution of certain tax matters and other adjustments related to prior years of $3.4 million partially offset by a charge of $2.3 million primarily related to a tax law change.
 
(c)   Represents the EPS impact of purchased intangible amortization, net of tax, of $0.7 million for both the three months ended September 30, 2008 and 2007, respectively and $2.0 million and $1.9 million for the nine months ended September 30, 2008 and 2007, respectively.