Exhibit 99.1
METTLER-TOLEDO INTERNATIONAL INC. REPORTS
THIRD QUARTER 2005 RESULTS
- - STRONG OPERATING PERFORMANCE WITH 7% SALES GROWTH - -
- - SHARE REPURCHASE PROGRAM INCREASED BY $200 MILLION - -
GREIFENSEE, Switzerland and COLUMBUS, Ohio, USA - November 3, 2005 -
Mettler-Toledo International Inc. (NYSE: MTD) today announced net earnings
of $25.6 million, or $0.60 per share on a diluted basis, for the quarter
ended September 30, 2005. Net earnings in the quarter included two
non-recurring tax items that resulted in a net tax charge of $0.12 per
share. As more fully described below, the items consisted of a tax charge
related to the earnings repatriation associated with the American Jobs
Creation Act offset in part by the favorable resolution of certain tax
matters. In the third quarter of 2004, net earnings per share were $0.54
and included $0.04 per share in investigation-related costs. Excluding
these one-time items in both periods, net earnings per share increased 24%.
Sales for the quarter were $365.4 million, compared with $342.0 million in
the prior year, an increase of 7%. Local currency sales growth was 7% as
well. By region, local currency sales growth was 5% in the Americas, 7% in
Europe and 11% in Asia / Rest of World. Adjusted operating income for the
quarter amounted to $50.9 million, compared with the prior year quarter of
$40.9 million which included $2.7 million of investigation-related costs.
Excluding the one-time item in the prior year, adjusted operating income
increased 17%.
Sales for the nine-month period were $1.071 billion, compared with $1.005
billion in the prior year. This represents a 7% increase in reported sales,
consisting of 5% local currency sales growth and a 2% increase due to
currency. By region, local currency sales growth was 5% in the Americas, 3%
in Europe and 10% in Asia / Rest of World. For the nine-month period, net
earnings per share were $1.49 in 2005 which included the non-recurring tax
charge of $0.12 per share mentioned above and $0.30 per share charge in the
second quarter related to the previously-disclosed pipette litigation. Net
earnings per share on a diluted basis in 2004 were $1.57 which included
$0.06 per share in investigation costs. Excluding the one-time items in
both nine-month periods, net earnings per share increased 17%. Adjusted
operating income for the nine-month period was $138.0 million in 2005,
compared with the prior period amount of $120.4 million which included $3.9
million of investigation-related costs. Excluding the one-time item in the
prior period, adjusted operating income increased 11%.
Cash flow from operations in the quarter was $60.3 million, compared with
$47.0 million last year, an increase of 28%. Cash flow from operations for
the nine-month period was $117.6 million, versus $121.9 million in the
prior period. The Company repurchased 675,900 shares of its common stock in
the third quarter and 2,181,800 shares in the nine-month period.
Robert F. Spoerry, Chairman, President and Chief Executive Officer, stated,
"We are very pleased with our strong sales growth, operating profit
increase and cash flow generation in the quarter. EPS growth, excluding
one-time items, was excellent. All key businesses demonstrated sales
increases while food retailing and transportation and logistics were
particularly strong. Furthermore, sales growth was robust in all geographic
regions. The solid sales performance across this broad range of products
and markets reflects well on our many new product introductions and the
execution of Project Spinnaker which aims to improve the effectiveness of
our sales, service and marketing organization."
Spoerry concluded, "As we look towards 2006, we are cautiously optimistic
that we can add another year of solid sales and earnings growth. We are
well positioned competitively and will benefit from the execution of our
strategic initiatives. Our caution relates principally to the global
economy and we will continue to closely monitor it and adjust our plans
should conditions change. Based on an economic environment and market
conditions similar to today's, we are currently targeting 2006 EPS in the
range of $3.20 to $3.25, assuming local currency sales growth in the range
of 5%." The Company noted that beginning in 2006, its stock-based
compensation program will be expensed as per the guidelines of FAS 123R.
The guidance provided does not reflect an approximate $0.13 per share
expense for its stock-based compensation program. The Company added that it
expects 2005 EPS to be approximately $2.80, which excludes the one-time
items mentioned earlier.
The Company currently has a $300 million stock repurchase program through
the end of 2006 of which $210.5 million has been expended to date. The
Company announced that the Board of Directors today authorized an
additional $200 million in share repurchases through December 31, 2007.
Spoerry commented, "We believe that our share repurchase program reflects
our confidence in the strength of our franchise and will continue to
enhance shareholder value. Our balance sheet is very strong and combined
with our excellent cash flow generation allows us to repurchase shares
without constraining 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.
As mentioned earlier, in the third quarter of 2005, the Company reported
two non-recurring tax items that resulted in a net tax charge of $0.12 per
share. The items consist of non-recurring tax expense of $13.1 million or
$0.30 per share relating to the impact of earnings repatriation associated
with the American Jobs Creation Act ("AJCA"). AJCA was enacted in October
2004 and allows U.S. corporations to repatriate accumulated income earned
abroad at a substantially reduced tax rate. The Company intends to
repatriate approximately $400 million of cash by December 31, 2005. The
Company expects that AJCA will result in tax savings of approximately $44
million over the coming years. The other item included in the third quarter
is a tax benefit of $7.7 million or $0.18 per share relating to the
favorable resolution of certain tax matters. Excluding the impact of these
two discrete items, the Company's effective tax rate in the quarter was
approximately 30%.
The Company has reconciled adjusted operating income to net earnings, the
most comparable U.S. GAAP measure, in the attached schedules.
The Company will host a conference call to discuss its third quarter
results today (Thursday, November 3) 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 1, of the Company's Annual Report on Form 10-K for
the fiscal year December 31, 2004. 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, 2005 September 30, 2004
(unaudited) % (unaudited) %
Net sales $ 365,428 (a) 100.0 $ 342,048 100.0
Cost of sales 186,422 51.0 176,293 51.5
----------- ----- ----------- -----
Gross profit 179,006 49.0 165,755 48.5
Research and development 19,315 5.3 20,190 5.9
Selling, general and administrative 108,777 29.8 104,683 (c) 30.6
----------- ----- ----------- -----
Adjusted operating income 50,914 13.9 40,882 12.0
Amortization 2,816 0.8 2,925 0.9
Interest expense 4,006 1.1 2,909 0.8
Other charges (income), net (249) (0.1) (135) (0.0)
----------- ----- ----------- -----
Earnings before taxes 44,341 12.1 35,183 10.3
Provision for taxes 18,723 (b) 5.1 10,555 3.1
----------- ----- ----------- -----
Net earnings $ 25,618 7.0 $ 24,628 7.2
=========== ===== =========== =====
Diluted per share amounts:
Net earnings $ 0.60 $ 0.54
Weighted average number of common shares 42,893,530 45,520,086
<FN>
Notes:
(a) Local currency sales increased 7% as compared to the same period in
2004.
(b) Includes a net tax charge of $5.4 million, or $0.12 per share, related
to earnings repatriation associated with the American Jobs Creation
Act ($13.1 million) offset in part by the favorable resolution of
certain tax contingencies ($7.7 million).
(c) Includes $2.7 million ($1.9 million after-tax), or $0.04 per share, of
costs related to an investigation into allegations made by an employee
with respect to the Company and various company processes.
</FN>
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, 2005 September 30, 2004
(unaudited) (unaudited)
Net sales $ 365,428 $ 342,048
Cost of sales 186,422 176,293
----------- -----------
Gross profit 179,006 165,755
Research and development 19,315 20,190
Selling, general and administrative 108,777 104,683
Amortization 2,816 2,925
Interest expense 4,006 2,909
Other charges (income), net (249) (135)
----------- -----------
Earnings before taxes 44,341 35,183
Provision for taxes 18,723 10,555
----------- -----------
Net earnings $ 25,618 $ 24,628
=========== ===========
Basic earnings per common share:
Net earnings $ 0.61 $ 0.56
Weighted average number of common shares 41,786,186 44,320,477
Diluted earnings per common share:
Net earnings $ 0.60 $ 0.54
Weighted average number of common shares 42,893,530 45,520,086
METTLER-TOLEDO INTERNATIONAL INC.
COMPARATIVE FINANCIAL INFORMATION
(amounts in thousands except share data)
NINE months ended NINE months ended
September 30, 2005 September 30, 2004
(unaudited) % (unaudited) %
Net sales $ 1,071,225 (a) 100.0 $ 1,005,249 100.0
Cost of sales 548,999 51.2 521,299 51.9
----------- ----- ----------- -----
Gross profit 522,226 48.8 483,950 48.1
Research and development 61,053 5.7 61,009 6.0
Selling, general and administrative 323,209 30.2 302,512 (d) 30.1
----------- ----- ----------- -----
Adjusted operating income 137,964 12.9 120,429 12.0
Amortization 8,615 0.8 8,629 0.8
Interest expense 11,286 1.1 9,647 1.0
Other charges (income), net 20,996 (b) 2.0 (231) (0.0)
----------- ----- ----------- -----
Earnings before taxes 97,067 9.0 102,384 10.2
Provision for taxes 32,357 (c) 3.0 30,716 3.1
----------- ----- ----------- -----
Net earnings $ 64,710 6.0 $ 71,668 7.1
=========== ===== ========== =====
Diluted per share amounts:
Net earnings $ 1.49 $ 1.57
Weighted average number of common shares 43,573,821 45,702,557
<FN>
Notes:
(a) Local currency sales increased 5% as compared to the same period in
2004.
(b) Includes a $21.8 million ($13.1 million after-tax), or $0.30 per
share, one-time pipette litigation charge related to a $19.9 million
($12 million after-tax) non-cash write-off of an intellectual property
license and $1.9 million ($1.1 million after-tax) of related legal
costs.
(c) Includes a net tax charge of $5.4 million, or $0.12 per share, related
to earnings repatriation associated with the American Jobs Creation
Act ($13.1 million) offset in part by the favorable resolution of
certain tax contingencies ($7.7 million).
(d) Includes $3.9 million ($2.7 million after-tax), or $0.06 per share, of
costs related to an investigation into allegations made by an employee
with respect to the Company and various company processes.
</FN>
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, 2005 September 30, 2004
(unaudited) (unaudited)
Net sales $ 1,071,225 $ 1,005,249
Cost of sales 548,999 521,299
----------- -----------
Gross profit 522,226 483,950
Research and development 61,053 61,009
Selling, general and administrative 323,209 302,512
Amortization 8,615 8,629
Interest expense 11,286 9,647
Other charges (income), net 20,996 (231)
----------- -----------
Earnings before taxes 97,067 102,384
Provision for taxes 32,357 30,716
----------- -----------
Net earnings $ 64,710 $ 71,668
=========== ===========
Basic earnings per common share:
Net earnings $ 1.53 $ 1.61
Weighted average number of common shares 42,427,364 44,449,189
Diluted earnings per common share:
Net earnings $1.49 $1.57
Weighted average number of common shares 43,573,821 45,702,557
METTLER-TOLEDO INTERNATIONAL INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
September 30, 2005 December 31, 2004
(unaudited)
Cash and cash equivalents $ 94,396 $ 67,176
Accounts receivable, net 250,588 271,097
Inventories 152,379 156,539
Other current assets and prepaid expenses 55,992 57,545
---------- -----------
Total current assets 553,355 552,357
Property, plant and equipment, net 218,075 242,709
Goodwill and other intangibles 529,984 560,181
Other non-current assets 122,001 124,825
---------- -----------
Total assets $1,423,415 $1,480,072
========== ===========
Short-term debt $4,388 $6,913
Accounts payable 70,581 85,129
Accrued and other current liabilities 263,759 256,204
---------- -----------
Total current liabilities 338,728 348,246
Long-term debt 223,990 196,290
Other non-current liabilities 202,884 214,650
---------- -----------
Total liabilities 765,602 759,186
Shareholders' equity 657,813 720,886
---------- -----------
Total liabilities and shareholders' equity $1,423,415 $1,480,072
========== ===========
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,
2005 2004 2005 2004
(unaudited) (unaudited) (unaudited) (unaudited)
Cash flow from operating activities:
Net earnings $ 25,618 $ 24,628 $ 64,710 $ 71,668
Adjustments to reconcile net earnings to
net cash provided by operating activities:
Depreciation 6,342 6,728 19,458 19,639
Amortization 2,816 2,925 8,615 8,629
Other 7,120 (425) 14,698 (144)
Increase in cash resulting from changes in
operating assets and liabilities 18,413 13,150 10,108 22,137
--------- --------- --------- ---------
Net cash provided by operating activities 60,309 47,006 117,589 121,929
--------- --------- --------- ---------
Cash flows from investing activities:
Proceeds from sale of property, plant and equipment 280 339 874 1,715
Purchase of property, plant and equipment (9,123) (6,850) (21,046) (17,517)
Acquisitions (3,771) (1,296) (3,984) (2,287)
--------- --------- --------- ---------
Net cash used in investing activities (12,614) (7,807) (24,156) (18,089)
--------- --------- --------- ---------
Cash flows from financing activities:
Proceeds from borrowings 72,699 31,607 159,318 68,345
Repayments of borrowings (107,269) (28,183) (130,705) (114,683)
Proceeds from exercise of stock options 7,526 3,993 11,451 10,899
Repurchases of common stock (33,481) (40,523) (108,131) (60,095)
--------- --------- --------- ---------
Net cash used in financing activities (60,525) (33,106) (68,067) (95,534)
--------- --------- --------- ---------
Effect of exchange rate changes on cash and
cash equivalents 3,362 342 1,854 626
--------- --------- --------- ---------
Net increase (decrease) in cash and cash equivalents (9,468) 6,435 27,220 8,932
Cash and cash equivalents:
Beginning of period 103,864 47,613 67,176 45,116
--------- --------- --------- ---------
End of period $ 94,396 $ 54,048 $ 94,396 $ 54,048
========= ========= ========= =========
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW
Net cash provided by operating activities $ 60,309 $ 47,006 $ 117,589 $ 121,929
Payments in respect of restructuring activities 420 585 1,941 3,320
Proceeds from sale of property, plant and equipment 280 339 874 1,715
Purchase of property, plant and equipment (9,123) (6,850) (21,046) (17,517)
--------- --------- --------- ---------
Free cash flow $ 51,886 $ 41,080 $ 99,358 $ 109,447
========= ========= ========= =========
METTLER-TOLEDO INTERNATIONAL INC.
OTHER OPERATING STATISTICS
LOCAL CURRENCY SALES GROWTH BY DESTINATION
Europe Americas Asia/RoW Total
----------------------------------------
Three Months Ended September 30, 2005 7% 5% 11% 7%
Nine Months Ended September 30, 2005 3% 5% 10% 5%
RECONCILIATION OF EPS AS REPORTED TO EPS EXCLUDING ONE-TIME ITEMS
THREE months ended NINE months ended
September 30, September 30,
2005 2004 2005 2004
(unaudited) (unaudited) (unaudited) (unaudited)
EPS as reported, diluted $0.60 $0.54 $1.49 $1.57
Discrete tax items (a) 0.12 - 0.12 -
Non-cash intangible write-off and litigation (b) - - 0.30 -
Investigation related costs (c) - 0.04 - 0.06
------ ----- ------ -----
EPS excluding one-time items, diluted $0.72 $0.58 $1.91 $1.63
====== ===== ====== =====
<FN>
Notes:
(a) EPS impact of net tax charges related to earnings repatriation
associated with the American Job Creation Act ($13.1 million) offset
in part by the favorable resolution of certain tax contingencies ($7.7
million).
(b) EPS impact of one-time pipette litigation charge related to a $19.9
million ($12 million after-tax) non-cash write-off of an intellectual
property license and $1.9 million ($1.1 million after-tax) of related
legal costs.
(c) EPS impact of costs related to an investigation into allegations made
by an employee with respect to the Company and various company
processes.
</FN>