16% Increase in Adjusted Operating Profit
Contacts:
William P. Donnelly, Chief Financial Officer
Phone: ++41 1 944 2262
Fax: ++41 1 944 2470
Mary T. Finnegan, Group Treasurer / Investor Relations
Phone: ++1 614 438 4748
Fax: ++1 614 438 4646
GREIFENSEE, Switzerland and COLUMBUS, Ohio, USA - July 27, 2000 - Mettler-Toledo
International Inc. (NYSE: MTD) today announced another record quarter, with net
earnings of $17.9 million, or $0.43 per share on a diluted basis, for the quarter
ended June 30, 2000. This represents a 23% increase over the second quarter
1999 net earnings of $0.35 per share before non-recurring items.
Sales for the quarter were $268.6 million, compared with $257.5 million for the
quarter ended June 30, 1999. This represents an increase of 10% in local currency
sales, partially offset by unfavorable exchange rates. The Company's adjusted
operating income increased 16% to $35.2 million, or 13.1% of sales, compared with
$30.2 million, or 11.7% of sales, in the same period of 1999.
For the six months ended June 30, 2000, the Company reported sales of $527.7 million,
compared with $493.2 million for 1999. The 2000 amount represents an increase of
12% in local currency sales, partially offset by unfavorable exchange rates. Adjusted
operating income for the same period increased 19% to $62.3 million, or 11.8% of sales,
from $52.3 million, or 10.6% of sales in the prior period. The Testut-Lutrana
acquisition, which was completed in May 1999, is reflected in the quarter and
year-to-date results.
Robert F. Spoerry, Chairman of the Board, President and Chief Executive Officer,
stated, "We achieved another quarter of robust organic sales growth and strong
improvement in operating profit - thereby exceeding our EPS target. Sales growth
in laboratory instruments was particularly strong, reflecting life science customers'
heightened demand for our solutions that incorporate automation and data integration.
Our constant stream of innovation continues to reinforce our strong leadership
position in the laboratory instrument market."
Spoerry continued, "We are pleased with our internal growth rate of recent quarters
and remain confident regarding our prospects for the remainder of 2000 and for 2001.
We are well positioned for continued strong growth supported by our many recent
product launches, including a new line of analytical and micro balances and several
revolutionary solutions to aid the acceleration of drug discovery and development."
As previously announced, the Company has appointed Dr. Stephen D. Allen as Head of
its Drug Discovery business. Dr. Allen joins METTLER TOLEDO from Perkin Elmer where
he was responsible for its European analytical instrument business. In commenting on
Dr. Allen's appointment, Mr. Spoerry stated, "We are extremely pleased to have an
executive of Steve's caliber lead our efforts in this important sector. Over the last
three years, METTLER TOLEDO has developed a leadership position in providing automation
solutions to help pharmaceutical and biotech customers accelerate their drug discovery
processes. Steve's assignment is to aggressively grow our leadership position in
drug discovery via internal investment, acquisitions and alliances."
For the six months ended June 30, 2000, the Company reported local currency sales
growth of 16% in Europe, 7% in the Americas and 21% in Asia and the Rest of World.
During the second quarter of 1999, the Company recorded a non-cash, non-recurring
acquisition charge of $1.0 million for the revaluation of inventory to fair market
value. This charge has been removed for comparison purposes.
METTLER TOLEDO is a leading global manufacturer of precision instruments. 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 systems used in production and packaging. 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.
METTLER-TOLEDO INTERNATIONAL INC.
ADJUSTED CONSOLIDATED STATEMENTS OF OPERATIONS
(amounts in thousands except per share data)
Three months ended Three months ended
June 30, 2000 June 30, 1999
(unaudited) % (unaudited) %
Net sales $268,558 100.0 $257,465 100.0
Cost of sales 148,972 55.5 142,712 55.4
-------- ----- -------- -----
Gross profit 119,586 44.5 114,753 44.6
Research and development 13,909 5.2 13,567 5.3
Selling, general and
administrative 70,461 26.2 70,938 27.6
-------- ----- -------- -----
Adjusted operating income 35,216 13.1 30,248 11.7
Amortization 2,753 1.0 2,434 0.9
Interest expense 5,009 1.9 5,412 2.1
Other charges (income), net (111) (0.1) (410) (0.2)
-------- ----- -------- -----
Earnings before taxes,
minority interest
and non-recurring item 27,565 10.3 22,812 8.9
Provision for taxes 9,645 3.6 7,985 3.1
Minority interest (11) 0.0 362 0.2
-------- ----- -------- -----
Earnings before
non-recurring item 17,931 6.7 14,465 5.6
Non-recurring item - - (998) (0.4)
-------- ----- -------- -----
Net earnings $17,931 6.7 $13,467 5.2
-------- ----- -------- -----
-------- ----- -------- -----
Diluted earnings per common share:
Earnings before
non-recurring item $0.43 $0.35
Non-recurring item - (0.02)
-------- --------
Net earnings $0.43 $0.33
-------- --------
-------- --------
Weighted average number
of common shares 41,995,780 41,134,537
The Consolidated Statements of Operations to be included in the
Company's Form 10-Q for the quarter ending June 30, 2000 is included
on the following page.
METTLER-TOLEDO INTERNATIONAL INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(amounts in thousands except per share data)
As Reported As Reported
----------- -----------
Three months ended Three months ended
June 30, 2000 June 30, 1999
(unaudited) (unaudited)
Net sales $268,558 $257,465
Cost of sales 148,972 143,710 (a)
-------- --------
Gross profit 119,586 113,755
Research and development 13,909 13,567
Selling, general and
administrative 70,461 70,938
Amortization 2,753 2,434
Interest expense 5,009 5,412
Other charges (income), net (111) (410)
-------- --------
Earnings before taxes and
minority interest 27,565 21,814
Provision for taxes 9,645 7,985
Minority interest (11) 362
-------- --------
Net earnings $17,931 $13,467
-------- --------
-------- --------
Basic earnings per common share:
Net earnings $0.46 $0.35
Weighted average number of
common shares 38,753,185 38,443,363
Diluted earnings per common share:
Net earnings $0.43 $0.33
Weighted average number of
common shares 41,995,780 41,134,537
Note:
(a) Includes a charge of $998 for the excess of fair value over
historical cost for inventories acquired in certain acquisitions.
In the Adjusted Consolidated Statement of Operations, as presented
on the previous page, this charge is reflected as a non-recurring
item.
METTLER-TOLEDO INTERNATIONAL INC.
ADJUSTED CONSOLIDATED STATEMENTS OF OPERATIONS
(amounts in thousands except per share data)
Six months ended Six months ended
June 30, 2000 June 30, 1999
(unaudited) % (unaudited) %
Net sales $527,674 100.0 $493,180 100.0
Cost of sales 293,847 55.7 273,200 55.4
-------- ----- -------- -----
Gross profit 233,827 44.3 219,980 44.6
Research and development 27,282 5.2 26,322 5.3
Selling, general and
administrative 144,238 27.3 141,322 28.7
-------- ----- -------- -----
Adjusted operating income 62,307 11.8 52,336 10.6
Amortization 5,618 1.0 4,969 1.0
Interest expense 10,399 2.0 10,988 2.2
Other charges (income), net 627 0.1 (318) (0.0)
-------- ----- -------- -----
Earnings before taxes,
minority interest and
non-recurring items 45,663 8.7 36,697 7.4
Provision for taxes 15,979 3.1 12,845 2.6
Minority interest (1) 0.0 497 0.1
-------- ----- -------- -----
Earnings before
non-recurring items 29,685 5.6 23,355 4.7
Non-recurring items - - (1,823) (0.3)
-------- ----- -------- -----
Net earnings $29,685 5.6 $21,532 4.4
-------- ----- -------- -----
-------- ----- -------- -----
Diluted earnings per common share:
Earnings before
non-recurring items $0.71 $0.57
Non-recurring items - (0.05)
-------- --------
Net earnings $0.71 $0.52
-------- --------
-------- --------
Weighted average number
of common shares 41,949,180 41,108,277
The Consolidated Statements of Operations to be included in the
Company's Form 10-Q for the six months ending June 30, 2000 is
included on the following page.
METTLER-TOLEDO INTERNATIONAL INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(amounts in thousands except per share data)
As Reported As Reported
----------- -----------
Six months ended Six months ended
June 30, 2000 June 30, 1999
(unaudited) (unaudited)
Net sales $527,674 $493,180
Cost of sales 293,847 274,198 (a)
-------- --------
Gross profit 233,827 218,982
Research and development 27,282 26,322
Selling, general and
administrative 144,238 141,322
Amortization 5,618 4,969
Interest expense 10,399 10,988
Other charges, net 627 507 (b)
-------- --------
Earnings before taxes
and minority interest 45,663 34,874
Provision for taxes 15,979 12,845
Minority interest (1) 497
-------- --------
Net earnings $29,685 $21,532
-------- --------
-------- --------
Basic earnings per common share:
Net earnings $0.77 $0.56
Weighted average number of
common shares 38,732,729 38,421,863
Diluted earnings per common share:
Net earnings $0.71 $0.52
Weighted average number of
common shares 41,949,180 41,108,277
Notes:
(a) Includes a charge of $998 for the excess of fair value over
historical cost for inventories acquired in certain acquisitions.
In the Adjusted Consolidated Statement of Operations, as presented
on the previous page, this charge is reflected as a non-recurring
item.
(b) Includes $825 of expenses incurred on behalf of certain selling
shareholders regarding the secondary offering completed in
February 1999. In the Adjusted Consolidated Statement of
Operations, as presented on the previous page, this charge is
reflected as a non-recurring item.
METTLER-TOLEDO INTERNATIONAL INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
AND CASH FLOW STATISTICS
(Amounts in thousands except financial ratios)
CONDENSED CONSOLIDATED BALANCE SHEETS
June 30, December 31,
2000 1999
---- ----
(unaudited)
Cash and cash equivalents $ 16,051 $ 17,179
Accounts receivable, net 192,671 203,750
Inventories, net 131,328 123,901
Other current assets 36,133 43,115
-------- --------
Total current assets 376,183 387,945
Property, plant and equipment, net 190,546 199,723
Other non-current assets 235,375 233,305
-------- --------
Total assets $802,104 $820,973
-------- --------
-------- --------
Short-term debt $ 48,939 $ 46,879
Accounts payable 60,392 81,234
Accrued and other current liabilities 202,855 208,062
-------- --------
Total current liabilities 312,186 336,175
Long-term debt 235,873 249,721
Other non-current liabilities 120,850 123,062
-------- --------
Total liabilities 668,909 708,958
Shareholders' equity 133,195 112,015
-------- --------
Total liabilities and
shareholders' equity $802,104 $820,973
-------- --------
-------- --------
CASH FLOW STATISTICS LTM LTM
June 30, June 30,
2000 (a) 1999 (a)
---- ----
(unaudited) (unaudited)
Net debt / EBITDA (b)(c) 1.7 2.5
EBITDA / interest expense (c)(d) 7.5 6.3
Notes:
(a) LTM represents last twelve months.
(b) Net debt represents gross debt less cash.
(c) EBITDA represents Adjusted Operating Income plus depreciation.
(d) Interest expense represents interest expense less amortization
of financing costs.
Mettler-Toledo International
