Mettler-Toledo International (ticker: MTD, exchange: New York Stock Exchange (.N))
News Release -
7-Nov-2002
Mettler-Toledo International Inc. Reports Third Quarter 2002 Results
GREIFENSEE, Switzerland & COLUMBUS, Ohio--(BUSINESS WIRE)--
Nov. 7, 2002-- Mettler-Toledo International Inc. (NYSE:MTD)
Mettler-Toledo International Inc. (NYSE:MTD) today announced net
earnings of $23.0 million, or $0.51 per share on a diluted basis, for
the quarter ended September 30, 2002. This compares with 2001 third
quarter earnings per share of $0.52, after adjusting last year for the
new goodwill accounting standard. Earnings per share increased 6% over
last year's reported amount of $0.48 per share.
For the nine months ending September 30, 2002, earnings per share
before non-recurring items on a diluted basis was $1.46, a 2% increase
over the prior year amount of $1.43, which is before non-recurring
items and adjusted for the new goodwill accounting standard. It
represents an 11% increase over last year's reported net earnings of
$1.32 per share before non-recurring items.
Sales for the quarter were $307.0 million, compared with
$285.1 million for the quarter ended September 30, 2001. This
represents an increase of 4% in local currency sales and an 8%
increase in reported sales. The Company's operating income before
amortization amounted to $40.2 million, or 13.1% of sales, compared
with $38.9 million, or 13.6% of sales, in the same period of 2001.
For the nine months ended September 30, 2002, the Company reported
sales of $876.4 million, compared with $829.7 million for 2001. This
represents an increase of 4% in local currency sales and a 6% increase
in reported sales. Operating income before amortization and
restructuring charges for the same period was $113.8 million, or 13.0%
of sales, compared with $109.6 million, or 13.2% of sales, in the
prior period.
Robert F. Spoerry, Chairman, President and Chief Executive
Officer, stated, "Our financial performance in the quarter was well on
track, even as we dealt with the challenges of a tough economic
environment and the decline of European food retailing business
following completion of the euro conversion at the end of last year. I
am pleased that our cash flow continues to be excellent, as we
achieved a 24% increase in the quarter versus the prior year. Our
operating margins were down slightly; however, this is principally the
result of adverse currency movements. Finally, we made measurable
progress on our cost-reduction programs; for example, we initiated the
closure of two manufacturing facilities and the transfer of production
to our Chinese operations, which will be completed within the next 12
months."
Spoerry continued, "In spite of difficult global economic
conditions, we have many signs of strength within our markets. Asia
continues to produce strong results driven by growth in that region
and our expanded product offering. In our service area, we are
experiencing heightened demand from our pharmaceutical customers, who
are seeking assistance in complying with FDA regulations. Finally, our
significant R&D spending over the past few years is yielding results
as we launch a record level of new products, particularly in the
laboratory area, in the second half of 2002 and into 2003."
Spoerry concluded, "As we look to next year, we have taken
necessary measures to continue earnings growth, even if the economy
remains challenging. At the same time, I am convinced that our
franchise continues to get stronger, as evidenced by our
market-leading positions, our excellent product pipeline and the
improvements we have made to our cost structure."
For the nine months ended September 30, 2002, the Company reported
local currency sales growth of 18% in the Americas and 8% in Asia and
the Rest of World and a sales decline of 10% in Europe.
The Company has reconciled its diluted earnings per share before
non-recurring items to its diluted earnings per share to be reported
in the Company's Form 10-Q for the quarter and nine-month period
ending September 30, 2002 on the schedules attached to this press
release.
The 2002 results include the Rainin acquisition.
The Company will host a conference call to discuss its third
quarter results today (Thursday, November 7th) at 5:30 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 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 share data)
Three months Three months
ended ended
September 30, 2002 September 30, 2001
(unaudited) % (unaudited) %
Net sales $306,990 100.0(a) $285,064 100.0
Cost of sales 164,067 53.4 154,040 54.0
-------- ----- ------- -----
Gross profit 142,92 46.6 131,024 46.0
Research and development 17,469 5.7 16,170 5.7
Selling, general and administrative 85,263 27.8 75,973 26.7
-------- ----- ------- -----
Adjusted operating income 40,191 13.1 38,881 13.6
Amortization 2,805 0.9 3,469 1.2
Interest expense 4,429 1.4 4,056 1.4
Other charges (income), net 139 0.1 (4) 0.0
-------- ----- ------- -----
Earnings before taxes and
non-recurring items 32,818 10.7 31,360 11.0
Provision for taxes 9,841 3.2 10,976 3.8
-------- ----- ------- -----
Net earnings $ 22,977 7.5 $ 20,384 7.2
======== ===== ======== =====
Diluted earnings per common share:
Net earnings $ 0.51 $ 0.48(b)
Weighted average number
of common shares 45,235,544 42,463,944
The Consolidated Statements of Operations to be included in the
Company's Form 10-Q for the quarter ending September 30, 2002 is
included on the following page.
Notes:
(a) Local currency sales growth as compared to the same period in 2001
was 4%.
(b) As described in our Annual Report on Form 10-K for the year ending
December 31, 2001, the adoption of SFAS142 "Goodwill and Other
Intangible Assets" would have had the effect of increasing our
quarterly diluted earnings per share to $0.52 per share for the
three months ending September 30, 2001.
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, 2002 September 30, 2001
(unaudited) (unaudited)
Net sales $306,990 $285,064
Cost of sales 164,067 154,040
-------- --------
Gross profit 142,923 131,024
Research and development 17,469 16,170
Selling, general and administrative 85,263 75,973
Amortization 2,805 3,469
Interest expense 4,429 4,056
Other charges (income), net 139 (4)
-------- --------
Earnings before taxes 32,818 31,360
Provision for taxes 9,841 10,976
-------- --------
Net earnings $ 22,977 $ 20,384
======== ========
Basic earnings per common share:
Net earnings $ 0.52 $ 0.51
Weighted average number of common shares 44,355,475 40,157,813
Diluted earnings per common share:
Net earnings $ 0.51 $ 0.48
Weighted average number of common shares 45,235,544 42,463,944
METTLER-TOLEDO INTERNATIONAL INC.
ADJUSTED CONSOLIDATED STATEMENTS OF OPERATIONS
(amounts in thousands except share data)
Nine months Nine months
ended ended
September 30, 2002 September 30, 2001
(unaudited) % (unaudited) %
Net sales $876,401 100.0(a) $829,741 100.0
Cost of sales 467,259 53.3 453,558 54.7
-------- ----- ------- -----
Gross profit 409,14 46.7 376,183 45.3
Research and development 51,930 5.9 46,480 5.6
Selling, general and administrative 243,442 27.8 220,097 26.5
-------- ----- ------- -----
Adjusted operating income 113,770 13.0 109,606 13.2
Amortization 6,480 0.7 9,706 1.2
Interest expense 13,175 1.5 13,402 1.6
Other charges (income), net (253) 0.0 98 0.0
-------- ----- ------- -----
Earnings before taxes and
non-recurring items 94,368 10.8 86,400 10.4
Provision for taxes 28,311 3.3 30,240 3.6
-------- ----- ------- -----
Earnings before non-recurring items 66,057 7.5 56,160 6.8
Non-recurring items 3,072 0.4 (14,596)(1.8)
-------- ----- ------- -----
Net earnings $ 69,129 7.9 $ 41,564 5.0
======== ===== ======= =====
Diluted earnings per common share:
Earnings before non-recurring
items $ 1.46 $ 1.32(b)
Non-recurring items 0.06 (0.34)
-------- -------
Net earnings $ 1.52 $ 0.98(b)
======== =======
Weighted average number of
common shares 45,387,431 42,491,493
The Consolidated Statements of Operations to be included in the
Company's Form 10-Q for the nine months ending September 30, 2002 is
included on the following page.
Notes:
(a) Local currency sales growth as compared to the same period in 2001
was 4%.
(b) As described in our Annual Report on Form 10-K for the year ending
December 31, 2001, the adoption of SFAS 142 "Goodwill and Other
Intangible Assets" would have had the effect of increasing our
diluted earnings per share before non-recurring items to $1.43 per
share and our diluted earnings per share to $1.09 per share for
the nine months ending September 30, 2001.
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, 2002 September 30, 2001
(unaudited) (unaudited)
Net sales $876,401 $829,741
Cost of sales 467,259 453,558
-------- --------
Gross profit 409,142 376,183
Research and development 51,930 46,480
Selling, general and administrative 243,442 220,097
Amortization 6,480 9,706
Interest expense 13,175 13,402
Other charges, net 28,408(a) 15,294(c)
-------- --------
Earnings before taxes 65,707 71,204
Provision (benefit) for taxes (3,422)(b) 29,640(d)
-------- --------
Net earnings $ 69,129 $ 41,564
======== ========
Basic earnings per common share:
Net earnings $ 1.56 $ 1.04
Weighted average number of common shares 44,245,866 39,995,729
Diluted earnings per common share:
Net earnings $ 1.52 $ 0.98
Weighted average number of common shares 45,387,431 42,491,493
Notes:
(a) Includes a charge of $28,661 ($20,063 after tax) which comprises
severance, asset write-downs and other costs primarily related to
headcount reductions and manufacturing transfers as previously
announced by the Company in its first quarter earnings release. In
the Adjusted Consolidated Statement of Operations as presented on
the previous page, this charge is reflected as a non-recurring
item.
(b) Includes a tax benefit of $8,598 in respect of (a) above and a
benefit of $23,135 in respect of the tax-restructuring program as
previously announced by the Company in its first quarter earnings
release. In the Adjusted Consolidated Statement of Operations as
presented on the previous page, these benefits are reflected as
non-recurring items.
(c) Includes a charge of $15,196 ($14,596 after tax) which comprises
severance, asset write-downs and other costs primarily related to
headcount reductions and manufacturing transfers. In the Adjusted
Consolidated Statement of Operations as presented on the previous
page, this charge is reflected as a non-recurring item.
(d) Includes a tax benefit of $600 in respect of (c) above.
METTLER-TOLEDO INTERNATIONAL INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
AND CASH FLOW STATISTICS
(Amounts in thousands except financial ratios)
CONDENSED CONSOLIDATED BALANCE SHEETS September 30, December 31,
2002 2001
---- ----
(unaudited)
Cash and cash equivalents $ 28,282 $ 27,721
Accounts receivable, net 221,437 227,295
Inventories, net 150,729 145,621
Other current assets 39,051 31,121
---------- ----------
Total current assets 439,499 431,758
Property, plant and equipment, net 208,036 192,272
Goodwill and other intangibles 544,469 511,471
Other non-current assets 55,969 53,911
---------- ----------
Total assets $1,247,973 $1,189,412
========== ==========
Short-term debt $ 50,627 $ 50,239
Accounts payable 54,370 66,327
Accrued and other current liabilities 233,687 231,021
---------- ----------
Total current liabilities 338,684 347,587
Long-term debt 280,571 309,479
Other non-current liabilities 153,235 144,162
---------- ----------
Total liabilities 772,490 801,228
Shareholders' equity 475,483 388,184
---------- ----------
Total liabilities and
shareholders' equity $1,247,973 $1,189,412
========== ==========
CASH FLOW STATISTICS LTM LTM
September 30, September 30,
2002(a) 2001(a)
---- ----
(unaudited) (unaudited)
Net debt / EBITDA (b)(c) 1.6 1.3
EBITDA / interest expense (c)(d) 11.9 9.5
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.
--30--CMM/cl*
| CONTACT: |
Mettler-Toledo International Inc. |
| |
Dennis Braun, Chief Financial Officer |
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Phone: ++41 1 944 3345 |
| |
Fax: ++41 1 944 2470 |
| |
or |
| |
Mary T. Finnegan, Treasurer/Investor Relations |
| |
Phone: ++1 614 438 4748 |
| |
Fax: ++1 614 438 4646 |
|
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Mettler-Toledo International
