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Mettler-Toledo International Annual Report, Year Ended Dec 31, 2005

Filing Date
Filed February 21, 2006
Period End
December 31, 2005
Security
MTD
In the record · 2016–202610-K1110-Q328-K94

MTD filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 94 current reports (8-K) between 2016 and 2026.

  1. FY2016 annual report10-K · Feb ’17Feb ’17
  2. Leadership change8-K · Dec ’19Dec ’19
  3. Material agreement8-K · Dec ’21Dec ’21
  4. Leadership change8-K · Oct ’25Oct ’25

01—Abstract

Summary

Summary of the 10-K filed February 21, 2006. Cited figures are marked; the original filing is the authoritative source.

Mettler-Toledo International Inc. reported net sales of $1,482.5 milliona for 2005, up from $1,404.5 million in 2004, with net earnings of $108.9 million (diluted EPS of $2.52) compared with $108.0 million in 2004.

The company describes itself as the world's largest manufacturer of weighing instruments and the world's largest manufacturer and marketer of metal detection and other end-of-line inspection systems. Sales were 42% from Europe, 41% from North and South America and 17% from Asia and other countries. Adjusted Operating Income, the company's principal non-GAAP measure, rose to $206.7 millionb, or 13.9% of net sales, from $179.4 million, or 12.8%, in 2004.

Profitability was affected by a one-time $21.8 millionc pipette litigation charge in 2005, which included a $19.9 million non-cash write-off of an intellectual property license, and by a $13.1 million tax charge related to repatriating $396 million of foreign earnings under the American Jobs Creation Act. Cash provided by operating activities rose to $177.1 million, and cash and cash equivalents ended the year at $324.6 million. Total debt was $450.1 million, including $443.8 million of long-term debt, following the November 2005 amendment that raised the revolving credit facility to $450 million and extended its maturity to November 2010.

The company repurchased $164.6 milliond of its shares in 2005 and had $231.6 million of authorization remaining at year end. Historically it has not paid dividends. The filing also notes currency sensitivity, with a 1% strengthening of the Swiss franc against the euro estimated to reduce annual pre-tax earnings by $0.9 million to $1.1 million, and emerging-market and competitive risks, as described in the risk factors.

02—Key points

Key Highlights

  1. Net sales rose to $1,482.5 million in 2005 from $1,404.5 million in 2004, with the filing stating increases of 6% in U.S. dollars and 5% in local currencies.
  2. Net earnings were $108.9 million, or $2.52 per diluted share, versus $108.0 million, or $2.37 per diluted share, in 2004.
  3. Adjusted Operating Income increased to $206.7 million, or 13.9% of net sales, from $179.4 million, or 12.8%, in 2004.
  4. A one-time $21.8 million pipette litigation charge and a $13.1 million tax charge on the repatriation of $396 million of foreign earnings weighed on 2005 results.
  5. Cash from operations was $177.1 million, and year-end cash and cash equivalents were $324.6 million.
  6. The revolving credit facility was increased to $450 million and extended to November 2010; the company was in compliance with all covenants at December 31, 2005.
  7. The company repurchased $164.6 million of shares in 2005, with $231.6 million remaining under its authorization, and has historically not paid dividends.

03—Questions

Frequently Asked Questions

  1. What drove revenue growth in 2005?

    The filing attributes growth to improved laboratory-related end markets, particularly pharmaceutical and biotech customers, strong results in food retailing and transportation and logistics projects, and increased investment in China. Net sales increased 5% in local currencies and 6% in U.S. dollars, and Asian sales grew 9% in local currencies.

  2. How did the one-time charges affect 2005 earnings?

    Other charges, net were $20.2 million in 2005, including a $21.8 million pipette litigation charge tied to a $19.9 million write-off of an intellectual property license that was terminated by a judgment on June 6, 2005. The provision for taxes also included a net $5.4 million charge related to earnings repatriation and tax audit settlements.

  3. What currency risks does the company face?

    Swiss franc expenses are a much greater share of operating expenses than Swiss franc sales are of net sales, so a stronger Swiss franc reduces operating profit. The filing estimates that a 1% strengthening of the Swiss franc against the euro would reduce annual pre-tax earnings by $0.9 million to $1.1 million, and a 10% weakening of the U.S. dollar would increase the reported U.S. dollar value of debt by about $33.4 million.

  4. How is the company's debt structured after the November 2005 refinancing?

    Long-term debt was $443.8 million at December 31, 2005. It consisted of $149.5 million of 4.85% Senior Notes due November 2010 and $294.3 million drawn under the Amended Credit Agreement, which is unsecured, bears interest at LIBOR plus 0.375%, and had about $146.2 million available at year end.

  5. Does the company pay dividends and how much stock has it repurchased?

    The company states that historically it has not paid dividends on its common stock, but it will evaluate this policy periodically. In 2005 it repurchased 3,229,200 shares for $164.6 million at an average price of $50.94, and $231.6 million of remaining authorization existed at year end.

04—Continue

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