EXHIBIT 99.1
CONTACTS:
Dennis Braun, Chief Financial Officer
Phone: ++41 1 944 3345
Fax: ++41 1 944 2470
Mary T. Finnegan, Treasurer / Investor Relations
Phone: ++1 614 438 4748
Fax: ++1 614 438 4646
METTLER-TOLEDO INTERNATIONAL INC. REPORTS
FOURTH QUARTER 2003 RESULTS
- - 2% LOCAL CURRENCY SALES GROWTH (10% TOTAL SALES GROWTH) - -
- - ANNOUNCES $100 MILLION SHARE REPURCHASE PROGRAM - -
GREIFENSEE, Switzerland and COLUMBUS, Ohio, USA - February 5, 2004 -
Mettler-Toledo International Inc. (NYSE: MTD) today announced net earnings
of $32.9 million, or $0.72 per share on a diluted basis, for the quarter
ended December 31, 2003. This represents a 4% increase over net earnings
per share of $0.69 for the fourth quarter of 2002.
For the year ended December 31, 2003, net earnings per share were $2.19,
compared with $2.15 in 2002. These amounts exclude restructuring charges in
both periods and a one-time tax gain in 2002. On a reported basis, net
earnings per share were $2.11 in 2003, versus $2.21 in 2002.
Sales for the quarter were $370.4 million, compared with $337.3 million in
2002. This represents a 2% increase in local currency sales and an
incremental 8% benefit from currency. Adjusted operating income amounted to
$54.1 million, a 5% increase over the prior year amount of $51.4 million.
For the year ended December 31, 2003, the Company reported sales of $1.304
billion, compared with $1.214 billion for 2002. This represents a 7%
increase in reported sales, consisting of a 7% benefit from currency and
flat local currency sales. Adjusted operating income in 2003 amounted to
$167.4 million, compared with $165.2 million in the same period of 2002.
Adjusted operating income after restructuring charges was $161.9 million in
2003 and $136.5 million in 2002.
Robert F. Spoerry, Chairman, President and Chief Executive Officer, stated,
"We are pleased with our solid financial performance in the quarter. We
experienced better-than-expected sales growth in our core laboratory and
industrial businesses. Operating profit increased over the prior year, in
part due to the benefit of our cost-restructuring initiatives. Our free
cash flow for the full year increased 12% to $106 million from $95 million
in 2002."
Given the Company's strong financial condition and consistently high and
growing level of cash flow, the Board of Directors has authorized a share
repurchase program, commencing with an initial buyback of up to $100
million over the next two years. Spoerry commented, "This program reflects
our confidence in the strength and future growth prospects of our
franchise. We believe this program will be accretive to earnings per share,
enhance shareholder value, improve the liquidity of our stock and mitigate
dilution from employee stock options. With our annual cash flow generation
and availability under our new bank facility, we have significant financial
resources to pursue our acquisition strategy." The Company added that
repurchases will be made through open market transactions, and the timing
will depend on the level of acquisition activity, business and market
conditions, the stock price, trading restrictions and other factors.
Spoerry concluded, "Consistent with our focus on building for the future,
in 2003 we began launching exciting new products resulting from our record
R&D investment, expanded our Chinese operations, extended our service
offering and continued to improve our cost structure. We are cautiously
optimistic about 2004 as we anticipate gradual improvements in our
customers' spending patterns and expect economic conditions to be strong in
Asia, improving in the United States but weak in Europe. Based on this
assessment, we currently expect 2004 sales in local currency to increase
between 2% and 4% and EPS to grow between 5% and 10%."
For the 12 months ended December 31, 2003, the Company reported local
currency sales declines of 3% in the Americas and 2% in Europe and sales
growth of 17% in Asia and the Rest of World.
The Company has reconciled its diluted earnings per share before
restructuring charges to its diluted earnings per share to be reported in
the Company's Form 10-K for the quarter and year ended December 31, 2003 on
the comparative financial information schedules attached to this press
release. Additional operational data has also been reconciled to the most
comparable U.S. GAAP measure in the attached schedules.
The Company will host a conference call to discuss its fourth quarter
results today (Thursday, February 5) 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 Exhibit 99.1 to the Company's Annual Report
on Form 10-K for the fiscal year December 31, 2002.
METTLER-TOLEDO INTERNATIONAL INC.
COMPARATIVE FINANCIAL INFORMATION
(AMOUNTS IN THOUSANDS EXCEPT SHARE DATA)
THREE months ended THREE months ended
December 31, 2003 December 31, 2002
(unaudited) % (unaudited) %
Net sales $370,446 100.0 (a) $337,306 100.0
Cost of sales 194,203 52.4 178,711 53.0
---------- ------ ----------- -----
Gross profit 176,243 47.6 158,595 47.0
Research and development 20,918 5.6 18,695 5.5
Selling, general and administrative 101,226 27.4 88,517 26.3
---------- ------ ----------- ----
Adjusted operating income 54,099 14.6 51,383 15.2
Amortization 3,148 0.9 2,852 0.8
Interest expense 3,475 0.9 4,034 1.2
Other charges (income), net 417 0.1 (206) (0.1)
---------- ------ ----------- ----
Earnings before taxes 47,059 12.7 44,703 13.3
Provision for taxes 14,118 3.8 13,411 4.0
---------- ------ ----------- ----
Net earnings $ 32,941 8.9 $ 31,292 9.3
========== ====== =========== ====
Diluted per share amounts:
Net earnings $ 0.72 $ 0.69
Weighted average number of
common shares 45,711,078 45,317,919
Notes:
(a) Local currency sales increased 2% compared to the same period in 2002.
METTLER-TOLEDO INTERNATIONAL INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(AMOUNTS IN THOUSANDS EXCEPT SHARE DATA)
AS REPORTED AS REPORTED
----------- -----------
THREE months ended THREE months ended
December 31, 2003 December 31, 2002
(unaudited) (unaudited)
Net sales $ 370,446 $ 337,306
Cost of sales 194,203 178,711
------------ ------------
Gross profit 176,243 158,595
Research and development 20,918 18,695
Selling, general and administrative 101,226 88,517
Amortization 3,148 2,852
Interest expense 3,475 4,034
Other charges (income), net 417 (206)
------------ ------------
Earnings before taxes 47,059 44,703
Provision for taxes 14,118 13,411
------------ ------------
Net earnings $ 32,941 $ 31,292
============ ============
Basic earnings per common share:
Net earnings $ 0.74 $ 0.71
Weighted average number of
common shares 44,582,017 44,384,820
Diluted earnings per common share:
Net earnings $ 0.72 $ 0.69
Weighted average number of
common shares 45,711,078 45,317,919
METTLER-TOLEDO INTERNATIONAL INC.
COMPARATIVE FINANCIAL INFORMATION
(AMOUNTS IN THOUSANDS EXCEPT SHARE DATA)
YEAR ended YEAR ended
December 31, 2003 % December 31, 2002 %
Net sales $1,304,431 100.0 (a) $1,213,707 100.0
Cost of sales 686,255 52.6 645,970 53.2
----------- ------ ----------- ------
Gross profit 618,176 47.4 567,737 46.8
Research and development 78,003 6.0 70,625 5.8
Selling, general and administrative 372,822 28.6 331,959 27.4
----------- ------ ----------- ------
Adjusted operating income 167,351 12.8 165,153 13.6
Restructuring charge 5,444 0.4 (b)(c) 28,661 2.4 (c)(d)
----------- ------ ----------- ------
Adjusted operating income after
restructuring charge 161,907 12.4 136,492 11.2
Amortization 11,724 0.9 9,332 0.8
Interest expense 14,153 1.1 17,209 1.4
Other charges (income), net (881) (0.1)(c) (459) (0.1)(c)
----------- ------ ----------- ------
Earnings before taxes 136,911 10.5 110,410 9.1
Provision for taxes 41,073 3.2 9,989 0.8 (e)
----------- ------ ----------- ------
Net earnings $ 95,838 7.3 $ 100,421 8.3
=========== ====== =========== ======
Diluted per share amounts:
Net earnings before restructuring charge and
one-time tax gain $ 2.19 $ 2.15
Restructuring charge, net of tax benefit (0.08) (0.45)
One-time tax gain - 0.51
----------- -----------
Net earnings $ 2.11 $ 2.21
=========== ===========
Weighted average number of common shares 45,508,847 45,370,053
Reconciliation of net earnings:
Net earnings before restructuring charge and
one-time tax gain $ 99,649 $ 97,349
Restructuring charge, net of tax benefit (3,811) (20,063)
One-time tax gain - 23,135
----------- -----------
Net earnings $ 95,838 $ 100,421
=========== ===========
<FN>
Notes:
(a) Local currency sales were flat compared to the same period in 2002.
(b) Relates to the final union settlement on the facility closure in
France. As described in Note 14 in the Company's Annual Report on Form
10-K for the year ended December 31, 2002, in accordance with U.S.
GAAP, the Company accrued the minimum contractual payment required by
French law in the restructuring charge taken in the second quarter of
2002.
(c) In the Consolidated Statements of Operations, the restructuring
charges are included in Other charges (income), net.
(d) Comprises severance, asset write-downs and other costs primarily
related to headcount reductions and manufacturing transfers.
(e) Includes a one-time gain of $23,135 in respect of a tax restructuring
program and related tax audits.
</FN>
METTLER-TOLEDO INTERNATIONAL INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(AMOUNTS IN THOUSANDS EXCEPT SHARE DATA)
AS REPORTED AS REPORTED
----------- -----------
YEAR ended YEAR ended
December 31, 2003 December 31, 2002
Net sales $ 1,304,431 $ 1,213,707
Cost of sales 686,255 645,970
------------- -------------
Gross profit 618,176 567,737
Research and development 78,003 70,625
Selling, general and administrative 372,822 331,959
Amortization 11,724 9,332
Interest expense 14,153 17,209
Other charges (income), net 4,563 (a) 28,202 (c)
------------- -------------
Earnings before taxes 136,911 110,410
Provision for taxes 41,073 (b) 9,989 (d)
------------- -------------
Net earnings $ 95,838 $ 100,421
============= =============
Basic earnings per common share:
Net earnings $ 2.15 $ 2.27
Weighted average number of common shares 44,473,913 44,280,605
Diluted earnings per common share:
Net earnings $ 2.11 $ 2.21
Weighted average number of common shares 45,508,847 45,370,053
<FN>
Notes:
(a) Includes a restructuring charge of $5,444 ($3,811 after tax) related
to the final union settlement on the facility closure in France. As
described in Note 14 in the Company's Annual Report on Form 10-K for
the year ended December 31, 2002, in accordance with U.S. GAAP, the
Company accrued the minimum contractual payment required by French law
in the restructuring charge taken in the second quarter of 2002.
(b) Includes a tax benefit of $1,633 in respect of (a) above.
(c) Includes a restructuring charge of $28,661 ($20,063 after tax)
comprising severance, asset write-downs and other costs primarily
related to headcount reductions and manufacturing transfers.
(d) Includes a tax benefit of $8,598 in respect of (c) above and a
one-time gain of $23,135 in respect of a tax restructuring program and
related tax audits.
</FN>
METTLER-TOLEDO INTERNATIONAL INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(AMOUNTS IN THOUSANDS)
December 31, December 31,
2003 2002
Cash and cash equivalents $ 45,116 $ 31,427
Accounts receivable, net 249,353 231,673
Inventories, net 151,764 150,441
Other current assets 59,304 62,186
------------ ------------
Total current assets 505,537 475,727
Property, plant and equipment, net 231,512 217,754
Goodwill and other intangibles 548,814 537,792
Other non-current assets 93,198 72,120
------------ ------------
Total assets $1,379,061 $1,303,393
============ ============
Short-term debt $ 18,277 $ 50,578
Accounts payable 68,243 73,072
Accrued and other current liabilities 241,389 244,014
------------ ------------
Total current liabilities 327,909 367,664
Long-term debt 223,239 262,093
Other non-current liabilities 182,132 171,250
------------ ------------
Total liabilities 733,280 801,007
Shareholders' equity 645,781 502,386
------------ ------------
Total liabilities and shareholders' equity $1,379,061 $1,303,393
============ ============
METTLER-TOLEDO INTERNATIONAL INC.
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS
(AMOUNTS IN THOUSANDS)
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS THREE months ended YEAR ended
December 31, December 31,
2003 2002 2003 2002
(unaudited) (unaudited)
------------------------------ ------------------------------
Cash flows from operating activities:
Net earnings $ 32,941 $ 31,292 $ 95,838 $100,421
Adjustments to reconcile net earnings to
net cash provided by operating activities:
Depreciation 6,234 6,505 25,086 25,392
Amortization 3,148 2,852 11,724 9,332
Other 2,632 3,063 13 2,950
Voluntary pension contributions (17,111) (19,000) (17,111) (19,000)
Increase / (decrease) in cash resulting from
changes in operating assets and liabilities 10,933 11,481 1,681 (3,685)
--------- --------- --------- ---------
Net cash provided by operating activities 38,777 36,193 117,231 115,410
--------- --------- --------- ---------
Cash flow from investing activities:
Proceeds from sale of property, plant and
equipment 238 1,577 2,092 1,995
Purchase of property, plant and equipment (9,510) (7,887) (27,152) (33,157)
Acquisitions (964) (331) (4,450) (21,305)
--------- --------- --------- ---------
Net cash used in investing activities (10,236) (6,641) (29,510) (52,467)
--------- --------- --------- ---------
Cash flow from financing activities:
Proceeds from borrowings 197,122 23,554 248,726 81,425
Repayment of borrowings (215,324) (49,962) (325,946) (142,609)
Proceeds from option exercises 1,447 408 3,577 3,532
Refinancing fees (3,077) - (3,077) -
--------- --------- --------- ---------
Net cash used in financing activities (19,832) (26,000) (76,720) (57,652)
--------- --------- --------- ---------
Effect of exchange rate changes on cash and cash
equivalents 1,012 (407) 2,688 (1,585)
--------- --------- --------- ---------
Net increase (decrease) in cash and cash equivalents 9,721 3,145 13,689 3,706
--------- --------- --------- ---------
Cash and cash equivalents:
Beginning of period 35,395 28,282 31,427 27,721
--------- --------- --------- ---------
End of period $ 45,116 $ 31,427 $ 45,116 $ 31,427
========= ========= ========= =========
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW
Net cash provided by operating activities $ 38,777 $ 36,193 $117,231 $115,410
Payments in respect of restructuring activities 3,653 4,141 16,792 11,136
Proceeds from sale of property, plant and equipment 238 1,577 2,092 1,995
Purchase of property, plant and equipment (9,510) (7,887) (27,152) (33,157)
Refinancing fees (3,077) - (3,077) -
Other 599 (52) 596 (185)
--------- --------- --------- ---------
Free cash flow $ 30,680 $ 33,972 $106,482 $ 95,199
========= ========= ========= =========
METTLER-TOLEDO INTERNATIONAL INC.
OTHER OPERATING STATISTICS
LOCAL CURRENCY SALES GROWTH BY DESTINATION
Year ended December 31, 2003
-------------------------------------------------------------
Europe Americas Asia/RoW Total
Local currency sales growth (2)% (3)% 17% 0%
3 months ended December 31, 2003
-------------------------------------------------------------
Europe Americas Asia/RoW Total
Local currency sales growth (2)% 0% 24% 2%