EXHIBIT 99.1
METTLER-TOLEDO INTERNATIONAL INC. REPORTS
THIRD QUARTER 2004 RESULTS
- - SOLID EARNINGS AND CASH FLOW GENERATION - -
-- ADDITIONAL $200 MILLION STOCK REPURCHASE PROGRAM AUTHORIZED --
GREIFENSEE, Switzerland and COLUMBUS, Ohio, USA - November 4, 2004 -
Mettler-Toledo International Inc. (NYSE: MTD) today announced net earnings
of $24.6 million, or $0.54 per share on a diluted basis, for the quarter
ended September 30, 2004. This compares with net earnings per share of
$0.53 for the third quarter of 2003. Costs related to the previously
disclosed investigation included in the third quarter 2004 net earnings
amounted to $0.04 per share.
Sales for the quarter were $342.0 million, compared with $320.8 million in
the prior year. This represents a 7% increase in reported sales, consisting
of a 3% increase in local currency sales and a 4% increase due to currency.
Adjusted operating income amounted to $40.9 million, compared with $39.8
million last year. Included in adjusted operating income in the current
quarter are $2.7 million in investigation costs. Operating cash flow in the
quarter increased 20% over the prior year to $47.0 million.
Sales for the nine-month period were $1.005 billion, compared with $934.0
million in the prior year. This represents an 8% increase in reported
sales, consisting of 3% local currency sales growth and a 5% increase due
to currency. For the nine-month period, net earnings per share were $1.57
in 2004, compared with $1.38 in 2003. The 2004 amount includes $0.06 per
share in investigation costs. The 2003 amount includes a restructuring
charge related to the closure of the Company's French manufacturing
facility. Net earnings per share for the 2003 period would have been $0.09
higher without this charge. Adjusted operating income for the nine month
period was $120.4 million in 2004 and $107.8 million in 2003. Adjusted
operating income in 2004 includes investigation-related costs of $3.9
million and in 2003 includes the restructuring charge of $5.4 million.
Operating cash flow for the nine-month period was $121.9 million, versus
$78.5 million in the prior period, an increase of 55%.
Robert F. Spoerry, Chairman, President and Chief Executive Officer, stated,
"We are pleased with our operating performance in the quarter. Local
currency sales growth was in line with our expectations and gross margins
were strong. Most product lines achieved growth, with our business in China
particularly robust. We are also pleased to deliver another quarter of
solid cash flow generation."
The Board of Directors had previously authorized a $100 million stock
repurchase program through the end of 2005 of which the Company has spent
$60 million to date. The Company expects to utilize the remainder of the
current program by year end. The Company announced that the Board of
Directors authorized an additional $200 million in share repurchases
through December 31, 2006. Spoerry commented, "Our cash flow generation is
excellent, and the expanded share repurchase program reflects our continued
confidence in the strength of our franchise. We believe this program will
enhance shareholder value and given our strong balance sheet and growing
cash flow will not constrain 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, stock price, trading restrictions and other factors.
Spoerry concluded, "The economic outlook for the next year remains
uncertain given the potential impact of higher oil prices and the strength
of the recovery in Europe. While this uncertainty remains a concern, we are
confident that our strategic initiatives remain well on track. These
initiatives include improving the effectiveness of our sales, service and
marketing organization; introducing exciting new products; and continuing
efforts to improve the efficiency of our supply chain. Based on these
growth initiatives and an economic environment similar to today's, we are
currently targeting 2005 EPS in the range of $2.65 to $2.75, assuming local
currency sales growth of 3% to 5% before acquisitions." The Company noted
that the EPS guidance does not reflect proposed accounting changes for
equity-based compensation. The Company added that it expects 2004 EPS to
be at the high end of the current guidance of $2.35 to $2.40 per share,
excluding investigation-related costs.
The Company estimates that the remaining costs associated with the
investigation will be between $1 million and $2 million through the end of
2004.
For the nine months ended September 30, 2004, the Company reported local
currency sales growth of 3% in the Americas and 16% in Asia and Rest of
World and a 1% decline in local currency sales in Europe.
The Company will host a conference call to discuss its third quarter
results today (Thursday, November 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.
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 most recently ended fiscal year. The Company assumes
no obligation to update this press release.
METTLER-TOLEDO INTERNATIONAL INC.
COMPARATIVE FINANCIAL INFORMATION
(AMOUNTS IN THOUSANDS EXCEPT SHARE DATA)
THREE months ended THREE months ended
September 30, 2004 September 30, 2003
(unaudited) % (unaudited) %
Net sales $ 342,048 100.0 (a) $ 320,814 100.0
Cost of sales 176,293 51.5 168,950 52.7
---------- ------ ------------ ------
Gross profit 165,755 48.5 151,864 47.3
Research and development 20,190 5.9 19,277 6.0
Selling, general and administrative 104,683 30.6 92,783 28.9
---------- ------ ------------ -----
Adjusted operating income 40,882 12.0 39,804 12.4
Amortization 2,925 0.9 2,909 0.9
Interest expense 2,909 0.8 3,102 1.0
Other charges (income), net (135) (0.0) (753) (0.3)
---------- ----- ------------ -----
Earnings before taxes 35,183 10.3 34,546 10.8
Provision for taxes 10,555 3.1 10,364 3.3
---------- ------ ------------ ------
Net earnings $ 24,628 7.2 $ 24,182 7.5
========== ====== ============ ======
Diluted per share amounts:
Net earnings $ 0.54 $ 0.53
Weighted average number of common shares 45,520,086 45,568,383
Notes:
(a) Net sales in U.S. dollars increased 7% as compared to the same period
in 2003, of which 4% was due to currency exchange rate fluctuations.
METTLER-TOLEDO INTERNATIONAL INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(AMOUNTS IN THOUSANDS EXCEPT SHARE DATA)
AS REPORTED AS REPORTED
----------- -----------
THREE months ended THREE months ended
September 30, 2004 September 30, 2003
(unaudited) (unaudited)
Net sales $ 342,048 $ 320,814
Cost of sales 176,293 168,950
---------- ----------
Gross profit 165,755 151,864
Research and development 20,190 19,277
Selling, general and administrative 104,683 92,783
Amortization 2,925 2,909
Interest expense 2,909 3,102
Other charges (income), net (135) (753)
----------- -----------
Earnings before taxes 35,183 34,546
Provision for taxes 10,555 10,364
---------- ----------
Net earnings $ 24,628 $ 24,182
========== ==========
Basic earnings per common share:
Net earnings $ 0.56 $ 0.54
Weighted average number of common shares 44,320,477 44,485,712
Diluted earnings per common share:
Net earnings $ 0.54 $ 0.53
Weighted average number of common shares 45,520,086 45,568,383
METTLER-TOLEDO INTERNATIONAL INC.
COMPARATIVE FINANCIAL INFORMATION
(AMOUNTS IN THOUSANDS EXCEPT SHARE DATA)
NINE months ended NINE months ended
September 30, 2004 September 30, 2003
(unaudited) % (unaudited) %
Net sales $1,005,249 100.0 (a) $ 933,985 100.0
Cost of sales 521,299 51.9 492,052 52.7
---------- ----- ---------- -----
Gross profit 483,950 48.1 441,933 47.3
Research and development 61,009 6.0 57,085 6.1
Selling, general and administrative 302,512 30.1 271,596 29.1
Restructuring charge - - 5,444 0.6 (b)(c)
---------- ----- ----------- -----
Adjusted operating income 120,429 12.0 107,808 11.5
Amortization 8,629 0.8 8,576 0.9
Interest expense 9,647 1.0 10,678 1.1
Other charges (income), net (231) (0.0) (1,298) (0.1)
---------- ----- ---------- -----
Earnings before taxes 102,384 10.2 89,852 9.6
Provision for taxes 30,716 3.1 26,955 2.9
---------- ----- ----------- -----
Net earnings $ 71,668 7.1 $ 62,897 6.7
========== ====== =========== =====
Diluted per share amounts:
Net earnings $ 1.57 $ 1.38 (d)
Weighted average number of common shares 45,702,557 45,441,437
Notes:
(a) Net sales in U.S. dollars increased 8% as compared to the same period
in 2003, of which 5% was due to currency exchange rate fluctuations.
(b) Relates to the final union settlement on the facility closure in
France. As described in Note 15 in the Company's Annual Report on Form
10-K for the year ended December 31, 2003, 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 charge
is included in Other charges (income), net.
(d) Includes the impact of $0.09 from the restructuring charge, net of tax
benefit.
METTLER-TOLEDO INTERNATIONAL INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(AMOUNTS IN THOUSANDS EXCEPT SHARE DATA)
AS REPORTED AS REPORTED
----------- -----------
NINE months ended NINE months ended
September 30, 2004 September 30, 2003
(unaudited) (unaudited)
Net sales $ 1,005,249 $ 933,985
Cost of sales 521,299 492,052
----------- -----------
Gross profit 483,950 441,933
Research and development 61,009 57,085
Selling, general and administrative 302,512 271,596
Amortization 8,629 8,576
Interest expense 9,647 10,678
Other charges (income), net (231) 4,146 (a)
----------- -----------
Earnings before taxes 102,384 89,852
Provision for taxes 30,716 26,955 (b)
----------- -----------
Net earnings $ 71,668 $ 62,897
=========== ===========
Basic earnings per common share:
Net earnings $ 1.61 $ 1.42
Weighted average number of common shares 44,449,189 44,437,879
Diluted earnings per common share:
Net earnings $ 1.57 $ 1.38
Weighted average number of common shares 45,702,557 45,441,437
(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 15 in the Company's Annual Report on Form 10-K for
the year ended December 31, 2003, 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.
METTLER-TOLEDO INTERNATIONAL INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(AMOUNTS IN THOUSANDS)
September 30, December 31,
2004 2003
(unaudited)
Cash and cash equivalents $ 54,048 $ 45,116
Accounts receivable, net 239,939 249,353
Inventories, net 156,038 151,764
Other current assets and prepaid expenses 59,660 59,304
------------ ----------
Total current assets 509,685 505,537
Property, plant and equipment, net 224,247 231,512
Goodwill and other intangibles 548,670 548,814
Other non-current assets 100,611 101,413
------------ ----------
Total assets $ 1,383,213 $1,387,276
============ ==========
Short-term debt $ 9,512 $ 18,277
Accounts payable 60,259 68,243
Accrued and other current liabilities 271,981 241,389
------------ ----------
Total current liabilities 341,752 327,909
Long-term debt 185,323 223,239
Other non-current liabilities 182,336 182,132
------------ ----------
Total liabilities 709,411 733,280
Shareholders' equity 673,802 653,996
------------ ----------
Total liabilities and shareholders' equity $ 1,383,213 $1,387,276
============ ==========
METTLER-TOLEDO INTERNATIONAL INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(AMOUNTS IN THOUSANDS)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
THREE months ended NINE months ended
September 30, September 30,
2004 2003 2004 2003
(unaudited) (unaudited) (unaudited) (unaudited)
Cash flow from operating activities:
Net earnings $ 24,628 $ 24,182 $ 71,668 $ 62,897
Adjustments to reconcile net earnings to
net cash provided by operating activities:
Depreciation 6,728 6,163 19,639 18,852
Amortization 2,925 2,909 8,629 8,576
Other (425) (2,791) (144) (2,619)
Increase (decrease) in cash resulting from
changes in operating assets and liabilities 13,150 8,600 22,137 (9,252)
---------- ---------- ---------- ----------
Net cash provided by operating activities 47,006 39,063 121,929 78,454
---------- ---------- ---------- ----------
Cash flows from investing activities:
Proceeds from sale of property, plant and
equipment 339 1,250 1,715 1,854
Purchase of property, plant and equipment (6,850) (7,040) (17,517) (17,642)
Acquisitions (1,296) (1,514) (2,287) (3,486)
---------- ---------- ---------- ----------
Net cash used in investing activities (7,807) (7,304) (18,089) (19,274)
---------- ---------- ---------- ----------
Cash flows from financing activities:
Proceeds from borrowings 31,607 14,303 68,345 51,604
Repayments of borrowings (28,183) (47,932) (114,683) (110,622)
Proceeds from exercise of stock options 3,993 954 10,899 2,130
Repurchases of common stock (40,523) - (60,095) -
---------- ---------- ---------- ----------
Net cash used in financing activities (33,106) (32,675) (95,534) (56,888)
---------- ---------- ---------- ----------
Effect of exchange rate changes on cash and cash
equivalents 342 1,161 626 1,676
---------- ---------- ---------- ----------
Net increase in cash and cash equivalents 6,435 245 8,932 3,968
Cash and cash equivalents:
Beginning of period 47,613 35,150 45,116 31,427
---------- ---------- ---------- ----------
End of period $ 54,048 $ 35,395 $ 54,048 $ 35,395
========== ========== ========== ==========
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW
Net cash provided by operating activities $ 47,006 $ 39,063 $ 121,929 $ 78,454
Payments in respect of restructuring activities 585 4,606 3,320 13,139
Proceeds from sale of property, plant and
equipment 339 1,250 1,715 1,854
Purchase of property, plant and equipment (6,850) (7,040) (17,517) (17,642)
Other - (1,204) - (3)
--------- ---------- ---------- ----------
Free cash flow $ 41,080 $ 36,675 $ 109,447 $ 75,802
========== ========== ========== ==========
METTLER-TOLEDO INTERNATIONAL INC.
OTHER OPERATING STATISTICS
SALES GROWTH BY DESTINATION
3 months ended September 30, 2004
--------------------------------------------------------------
Europe Americas Asia/RoW Total
U.S. dollar sales growth 7% 3% 14% 7%
Impact of currency exchange rate fluctuations -8% 0% -3% -4%
--- -- --- ---
Local currency sales growth -1% 3% 11% 3%
9 months ended September 30, 2004
--------------------------------------------------------------
Europe Americas Asia/RoW Total
U.S. dollar sales growth 8% 3% 20% 8%
Impact of currency exchange rate fluctuations -9% 0% -4% -5%
--- -- --- ---
Local currency sales growth -1% 3% 16% 3%