Exhibit 99-1
METTLER-TOLEDO INTERNATIONAL INC. REPORTS
FIRST QUARTER 2007 RESULTS
- - Strong Sales Growth and Operating Performance - -
- - EPS Outlook Increased for 2007 - -
COLUMBUS, Ohio, USA - April 26, 2007 - Mettler-Toledo International Inc. (NYSE: MTD) today announced first quarter results. The highlights of the quarter were:
· | Sales growth in local currency was 8%. Reported sales growth was 12%, which included a 4% currency benefit. | |
· | Reported net earnings per diluted share (EPS) were $0.78, an increase of 37% over the first quarter 2006 amount of $0.57. | |
· | Projected 2007 EPS was increased to $4.18 to $4.28. |
First Quarter Results
Robert F. Spoerry, Chairman, President and Chief Executive Officer, stated, “We are very pleased with our record first quarter results and the solid start to 2007. Sales growth was broad-based, and operating profit margins and cash flow generation were strong. Our strategic initiatives remain well on track, and we have increased our full year EPS guidance.”
Reported EPS was $0.78 and increased 37% over the prior year first quarter EPS of $0.57.
Sales were $387.8 million, compared with $346.2 million in the prior year, an increase of 8% in local currency sales. Reported sales growth was 12%, which included a 4% favorable currency benefit. By region, local currency sales growth was 4% in Europe, 10% in the Americas and 11% in Asia / Rest of World. Adjusted operating income amounted to $48.7 million, a 27% increase over the prior year amount of $38.3 million.
Cash flow from operations was $32.3 million, compared with $19.1 million in 2006. The Company repurchased 838,000 shares of its stock for $71.5 million during the quarter.
2007 Outlook Increased
The Company stated that based on first quarter results and economic environment and market conditions that remain similar to today’s, it now expects 2007 EPS to be in the range of $4.18 to $4.28. This compares with previous 2007 EPS guidance of $4.10 to $4.20. In 2006, reported EPS was $3.86 which included a $0.20 benefit for discrete tax items. On a comparable basis - that is, excluding the discrete tax items in 2006 - current EPS guidance represents a growth of approximately 14% to 17%. For the second quarter, the Company expects EPS to be in the range of $1.01 to $1.03.
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 first quarter results today (Thursday, April 26) 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 manufacturer and marketer 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 on the World Wide Web 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, 2006. 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 | ||||||||
March 31, 2007 | % of sales | March 31, 2006 | % of sales | ||||||
Net sales | $387,764 | (a) | 100.0 | $346,160 | 100.0 | ||||
Cost of sales | 196,285 | 50.6 | 175,820 | 50.8 | |||||
Gross profit | 191,479 | 49.4 | 170,340 | 49.2 | |||||
Research and development | 21,336 | 5.5 | 19,939 | 5.7 | |||||
Selling, general and administrative (b) | 121,436 | 31.3 | 112,131 | 32.4 | |||||
Amortization | 2,925 | 0.8 | 2,855 | 0.8 | |||||
Interest expense | 4,460 | 1.2 | 4,076 | 1.2 | |||||
Other income, net | (362) | (0.1) | (2,538) | (0.7) | |||||
Earnings before taxes | 41,684 | 10.7 | 33,877 | 9.8 | |||||
Provision for taxes | 11,254 | 2.9 | 10,162 | 2.9 | |||||
Net earnings | $30,430 | 7.8 | $23,715 | 6.9 | |||||
Basic earnings per common share: | |||||||||
Net earnings | $0.80 | $0.58 | |||||||
Weighted average number of common shares | 38,065,483 | 41,050,849 | |||||||
Diluted earnings per common share: | |||||||||
Net earnings | $0.78 | $0.57 | |||||||
Weighted average number of common | 38,931,681 | 41,774,068 | |||||||
and common equivalent shares | |||||||||
Notes: | |||||||||
(a) | Local currency sales increased 8% as compared to the same period in 2006. | ||||||||
(b) | Amount includes share-based compensation for all periods presented. |
RECONCILIATION OF EARNINGS BEFORE TAXES TO ADJUSTED OPERATING INCOME | |||||||||
Three months ended | Three months ended | ||||||||
March 31, 2007 | % of sales | March 31, 2006 | % of sales | ||||||
Earnings before taxes | $41,684 | $33,877 | |||||||
Amortization | 2,925 | 2,855 | |||||||
Interest expense | 4,460 | 4,076 | |||||||
Other income, net | (362) | (2,538) | |||||||
Adjusted operating income (b) | $48,707 | (a) | 12.6 | $38,270 | 11.1 | ||||
Note: | |||||||||
(a) | Adjusted operating income increased 27% as compared to the same period in 2006. | ||||||||
(b) | Amount includes share-based compensation for all periods presented. |
METTLER-TOLEDO INTERNATIONAL INC. | ||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||
(amounts in thousands) | ||||
(unaudited) | ||||
March 31, 2007 | December 31, 2006 | |||
Cash and cash equivalents | $95,530 | $151,269 | ||
Accounts receivable, net | 290,671 | 306,879 | ||
Inventory | 160,590 | 148,372 | ||
Other current assets and prepaid expenses | 66,154 | 63,250 | ||
Total current assets | 612,945 | 669,770 | ||
Property, plant and equipment, net | 230,723 | 229,138 | ||
Goodwill and other intangibles | 536,753 | 535,621 | ||
Other non-current assets | 153,651 | 152,556 | ||
Total assets | $1,534,072 | $1,587,085 | ||
Short-term debt | $12,346 | $9,962 | ||
Accounts payable | 90,315 | 95,971 | ||
Accrued and other current liabilities | 250,209 | 278,446 | ||
Total current liabilities | 352,870 | 384,379 | ||
Long-term debt | 330,916 | 345,705 | ||
Other non-current liabilities | 250,000 | 226,139 | ||
Total liabilities | 933,786 | 956,223 | ||
Shareholders’ equity | 600,286 | 630,862 | ||
Total liabilities and shareholders’ equity | $1,534,072 | $1,587,085 | ||
METTLER-TOLEDO INTERNATIONAL INC. | |||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||
(amounts in thousands) | |||
(unaudited) | |||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||
Three months ended | |||
March 31, | |||
2007 | 2006 | ||
Cash flow from operating activities: | |||
Net earnings | $30,430 | $23,715 | |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Depreciation | 6,454 | 6,354 | |
Amortization | 2,925 | 2,855 | |
Deferred taxation | (2,375) | (1,680) | |
Excess tax benefits from share-based payment arrangements | (2,455) | (5,571) | |
Other | 2,086 | 998 | |
Increase in cash resulting from changes in operating assets and liabilities | (4,762) | (7,538) | |
Net cash provided by operating activities | 32,303 | 19,133 | |
Cash flows from investing activities: | |||
Proceeds from sale of property, plant and equipment | 206 | 1,638 | |
Purchase of property, plant and equipment | (7,857) | (6,004) | |
Acquisitions | - | (572) | |
Net cash used in investing activities | (7,651) | (4,938) | |
Cash flows from financing activities: | |||
Proceeds from borrowings | 3,792 | 7,696 | |
Repayments of borrowings | (17,306) | (26,784) | |
Proceeds from exercise of stock options | 6,023 | 9,741 | |
Excess tax benefits from share-based payment arrangements | 2,455 | 5,571 | |
Repurchases of common stock (a) | (76,939) | (72,103) | |
Net cash used in financing activities | (81,975) | (75,879) | |
Effect of exchange rate changes on cash and cash equivalents | 1,584 | 503 | |
Net decrease in cash and cash equivalents | (55,739) | (61,181) | |
Cash and cash equivalents: | |||
Beginning of period | 151,269 | 324,578 | |
End of period | $95,530 | $263,397 | |
Note: | |
(a) | The three months ended March 31, 2007 and 2006 include $5.4 million and $4.2 million, respectively, relating to the settlement of a liability for shares purchased as of December 31, 2006 and 2005. |
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW |
Net cash provided by operating activities | $32,303 | $19,133 | |
Excess tax benefits from share-based payment arrangements | 2,455 | 5,571 | |
Proceeds from sale of property, plant and equipment | 206 | 1,638 | |
Purchase of property, plant and equipment | (7,857) | (6,004) | |
Free cash flow | $27,107 | $20,338 | |
METTLER-TOLEDO INTERNATIONAL INC. | ||||
OTHER OPERATING STATISTICS | ||||
LOCAL CURRENCY SALES GROWTH BY DESTINATION | ||||
Europe | Americas | Asia/RoW | Total | |
Three Months Ended March 31, 2007 | 4% | 10% | 11% | 8% |