EXHIBIT 99.1
1
METTLER-TOLEDO INTERNATIONAL INC. REPORTS
FIRST QUARTER 2006 RESULTS
- - STRONG SALES GROWTH AND OPERATING PERFORMANCE - -
- - EPS GUIDANCE INCREASED FOR 2006 - -
GREIFENSEE, Switzerland and COLUMBUS, Ohio, USA - May 3, 2006 -
Mettler-Toledo International Inc. (NYSE: MTD) today announced net earnings
of $23.7 million, or $0.57 per share on a diluted basis, for the quarter
ended March 31, 2006. The first quarter 2006 results include $0.03 per
diluted share of share-based compensation expense. In the first quarter of
2005, net earnings per diluted share were $0.47 and did not include any
share-based compensation expense. Excluding the effect of share-based
compensation expense, net earnings per diluted share would have increased
28% in the quarter.
Sales for the quarter were $346.2 million, compared with $337.2 million in
the prior year, an increase of 7% in local currency sales. Reported sales
growth in the quarter was 3% and includes a 4% unfavorable currency impact.
By region, local currency sales growth was 10% in Europe, 1% in the
Americas and 11% in Asia / Rest of World. In the quarter, adjusted
operating income, which does not include share-based compensation expense,
amounted to $40.4 million a 13% increase over the prior year amount of
$35.7 million.
Cash flow from operations in the quarter was $19.1 million, compared with
$6.7 million in the prior year quarter. The Company repurchased 1.2 million
shares, representing 3% of its outstanding common stock, in the first
quarter.
Robert F. Spoerry, Chairman, President and Chief Executive Officer, stated,
"We are pleased with all key aspects of our financial performance in the
quarter. Our sales growth was driven by strong performance in our
laboratory products while food retailing also had good growth. Our
Industrial business was solid and came in as expected. We had another
quarter of gross margin expansion which drove the strong increase in
operating profit. Our EPS growth was excellent. Finally, we are very
pleased with our cash flow generation in the quarter."
Spoerry concluded, "We had a great start to 2006 with our first quarter
operating performance. We continue to make solid progress in the execution
of our strategic initiatives. Project Spinnaker, our corporate-wide
initiative to achieve excellence in sales, service and marketing, is
yielding tangible results. We also continue to launch innovative products
and our product pipeline remains robust. Based on the strong start to the
year, we have increased our full-year EPS guidance."
The Company stated that based on an economic environment and market
conditions similar to today's, it now expects 2006 EPS, including
share-based compensation expense, to be in the range of $3.22 to $3.27
compared with previous guidance of $3.17 to $3.22. EPS guidance excluding
the impact of share-based compensation expense is $3.36 to $3.41 compared
with previous guidance of $3.30 to $3.35. This guidance is based on local
currency sales growth in the range of 4% to 6% which remains unchanged. The
Company added that it expects second quarter 2006 EPS including the impact
of share-based compensation to be $0.79 to $0.81, and excluding share-based
compensation to be $0.82 to $0.84.
The Company has reconciled adjusted operating income to earnings before
taxes, the most comparable U.S. GAAP measure, in the attached schedules.
The Company will host a conference call to discuss its first quarter
results today (Wednesday, May 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 1A, of the Company's Annual Report on Form 10-K for
the fiscal year December 31, 2005. 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)
AS REPORTED AS REPORTED
----------- -----------
Three months ended Three months ended
March 31, 2006 March 31, 2005
Net sales $ 346,160 $ 337,160
Cost of sales 175,820 174,365
----------- -----------
Gross profit 170,340 162,795
Research and development 19,939 20,802
Selling, general and administrative 112,131 (a) 106,317
Amortization 2,855 2,808
Interest expense 4,076 3,516
Other income, net (2,538) (336)
----------- -----------
Earnings before taxes 33,877 29,688
Provision for taxes 10,162 8,907
----------- -----------
Net earnings $ 23,715 $ 20,781
=========== ===========
Basic earnings per common share:
Net earnings $ 0.58 $ 0.48
Weighted average number of common shares 41,050,849 43,139,233
Diluted earnings per common share:
Net earnings $0.57 $0.47
Weighted average number of common 41,774,068 44,388,971
and common equivalent shares
Notes:
<FN>
(a) Includes share-based compensation expense of $2.2 million for the three
months ended March 31, 2006.
</FN>
METTLER-TOLEDO INTERNATIONAL INC.
COMPARATIVE FINANCIAL INFORMATION
(amounts in thousands except share data)
(unaudited)
Three months ended Three months ended
March 31, 2006 % March 31, 2005 %
Net sales $346,160 (a) 100.0 (a) $337,160 100.0
Cost of sales 175,820 50.8 174,365 51.7
-------- ----- -------- -----
Gross profit 170,340 49.2 162,795 48.3
Research and development 19,939 5.7 20,802 6.2
Selling, general and administrative 109,972 (b) 31.8 106,317 31.5
-------- ----- -------- -----
Adjusted operating income 40,429 (c) 11.7 (c) 35,676 10.6
Share-based compensation 2,159 0.6 - 0.0
Amortization 2,855 0.8 2,808 0.9
Interest expense 4,076 1.2 3,516 1.0
Other income, net (2,538) (0.7) (336) (0.1)
-------- ----- -------- -----
Earnings before taxes 33,877 9.8 29,688 8.8
Provision for taxes 10,162 2.9 8,907 2.6
-------- ----- -------- -----
Net earnings $ 23,715 6.9 $ 20,781 6.2
======== ===== ======== =====
Diluted per share amounts:
Net earnings $0.57 $0.47
Weighted average number of common 41,774,068 44,388,971
and common equivalent shares
Notes:
<FN>
(a) Local currency sales increased 7% as compared to the same period in 2005.
(b) Excludes share-based compensation expense of $2.2 million for the
three months ended March 31, 2006.
(c) Adjusted operating income increased 13% as compared to the same period
in 2005.
</FN>
METTLER-TOLEDO INTERNATIONAL INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(amounts in thousands)
(unaudited)
March 31, 2006 December 31, 2005
Cash and cash equivalents $ 263,397 $ 324,578
Accounts receivable, net 249,628 271,915
Inventory 156,472 150,201
Other current assets and prepaid expenses 60,399 53,965
---------- ----------
Total current assets 729,896 800,659
Property, plant and equipment, net 215,076 218,519
Goodwill and other intangibles 528,987 528,209
Other non-current assets 124,098 122,386
---------- ----------
Total assets $1,598,057 $1,669,773
---------- ----------
Short-term debt $8,363 $6,345
Accounts payable 73,933 88,553
Accrued and other current liabilities 239,799 258,558
---------- ----------
Total current liabilities 322,095 353,456
Long-term debt 425,133 443,795
Other non-current liabilities 216,079 213,520
---------- ----------
Total liabilities 963,307 1,010,771
Shareholders' equity 634,750 659,002
---------- ----------
Total liabilities and shareholders' equity $1,598,057 $1,669,773
========== ==========
METTLER-TOLEDO INTERNATIONAL INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(amounts in thousands)
(unaudited)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Three months ended Three months ended
March 31, 2006 March 31, 2005
Cash flow from operating activities:
Net earnings $ 23,715 $ 20,781
Adjustments to reconcile net earnings to
net cash provided by operating activities:
Depreciation 6,354 6,653
Amortization 2,855 2,808
Deferred taxation (1,680) (2,606)
Excess tax benefits from share-based payment arrangements (5,571) 0
Other 998 1
Decrease in cash resulting from changes in
operating assets and liabilities (7,538) (20,949)
-------- --------
Net cash provided by operating activities 19,133 6,688
-------- --------
Cash flows from investing activities:
Proceeds from sale of property, plant and equipment 1,638 418
Purchase of property, plant and equipment (6,004) (5,345)
Acquisitions (572) (213)
-------- --------
Net cash used in investing activities (4,938) (5,140)
-------- --------
Cash flows from financing activities:
Proceeds from borrowings 7,696 34,255
Repayments of borrowings (26,784) (8,431)
Proceeds from exercise of stock options 9,741 1,974
Repurchases of common stock (72,103) (28,353)
Excess tax benefits from share-based payment arrangements 5,571 0
-------- --------
Net cash used in financing activities (75,879) (555)
-------- --------
Effect of exchange rate changes on cash and cash equivalents 503 (389)
-------- --------
Net increase (decrease) in cash and cash equivalents (61,181) 604
Cash and cash equivalents:
Beginning of period 324,578 67,176
-------- --------
End of period $263,397 $ 67,780
======== ========
RECONCILIATION OF NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW
Net cash provided by operating activities $ 19,133 $ 6,688
Excess tax benefits from share-based payment arrangements 5,571 0
Payments in respect of restructuring activities 0 425
Proceeds from sale of property, plant and equipment 1,638 418
Purchase of property, plant and equipment (6,004) (5,345)
-------- --------
Free cash flow $ 20,338 $ 2,186
======== ========
METTLER-TOLEDO INTERNATIONAL INC.
OTHER OPERATING STATISTICS
LOCAL CURRENCY SALES GROWTH BY DESTINATION
Europe Americas Asia/RoW Total
----------------------------------------
Three Months Ended March 31, 2006 10% 1% 11% 7%
RECONCILIATION OF EPS AS REPORTED TO EPS EXCLUDING
SHARE-BASED COMPENSATION EXPENSE
Three months ended
March 31,
2006 2005
(unaudited) (unaudited)
EPS as reported, diluted $0.57 (b) $0.47
Share-based compensation (a) 0.03 -
------ ------
EPS excluding share-based compensation expense, diluted $0.60 (c) $0.47
====== ======
Notes:
<FN>
(a) EPS impact of $2.2 million ($1.4 million after-tax) of share-based
compensation expense.
(b) EPS, as reported, increased 21% for the three months ended March 31,
2006 as compared to the same period in 2005.
(c) EPS, excluding share-based compensation expense, increased 28% for the
three months ended March 31, 2006 as compared to the same period in
2005.
</FN>