|
Quotes & Info
|
| MTD > SEC Filings for MTD > Form 8-K on 30-Apr-2009 | All Recent SEC Filings |
30-Apr-2009
Results of Operations and Financial Condition, Financial Statem
Adjusted Operating Income
Mettler-Toledo defines Adjusted Operating Income as gross profit less research
and development and selling, general and administrative expenses before
amortization, interest, other charges (income), net and taxes. The most directly
comparable U.S. GAAP financial measure is earnings before taxes.
Mettler-Toledo believes that Adjusted Operating Income is important supplemental
information for investors. Adjusted Operating Income is used internally as the
principal profit measurement by its segments in their reporting to management.
Mettler-Toledo uses this measure because it excludes amortization, interest,
other charges (income), net and taxes, which are not allocated to the segments.
On a consolidated basis, Mettler-Toledo also believes Adjusted Operating Income
is an important supplemental method of measuring profitability. It is used
internally by senior management for measuring profitability and setting
performance targets for managers, and has historically been used as one of the
means of publicly providing guidance on possible future results. Mettler-Toledo
also believes that Adjusted Operating Income is an important performance measure
because it provides a measure of comparability to other companies with different
capital or legal structures, which accordingly may be subject to disparate
interest rates and effective tax rates, and to companies which may incur
different amortization expenses or impairment charges related to intangible
assets.
Adjusted Operating Income is used in addition to and in conjunction with results
presented in accordance with U.S. GAAP. Adjusted Operating Income is not
intended to represent operating income under U.S. GAAP and should not be
considered as an alternative to earnings before taxes as an indicator of
Mettler-Toledo's performance because of the following limitations.
Limitations of Mettler-Toledo's non-GAAP measure, Adjusted Operating Income
Mettler-Toledo's non-GAAP measure, Adjusted Operating Income, has certain
material limitations as follows:
• It does not include interest expense. Because Mettler-Toledo has borrowed
money to finance some of its operations, interest is a necessary and
ongoing part of its costs and has assisted Mettler-Toledo in generating
revenue. Therefore any measure that excludes interest expense has material
limitations.
• It excludes amortization expense. Because this item is recurring, any measure that excludes amortization expense has material limitations.
• It excludes other charges (income), net. Because other charges (income), net is a component of operating income under U.S. GAAP, any measure that excludes other charges (income), net, has material limitations.
Free Cash Flow
Mettler-Toledo defines Free Cash Flow as net cash provided by operating
activities less capital expenditures, before restructuring payments, excess tax
benefits from share-based payment arrangements and proceeds from the sale of
property, plant and equipment. The most directly comparable U.S. GAAP financial
measure is net cash provided by operating activities.
Mettler-Toledo believes Free Cash Flow is important supplemental information for
investors. It is used internally by senior management for measuring operating
cash flow generation and setting performance targets for managers, and has
historically been used as one of the means of providing guidance on possible
future cash flows.
Free Cash Flow is used in addition to and in conjunction with results presented
in accordance with U.S. GAAP. Free Cash Flow is not intended to represent net
cash provided by operating activities recorded under U.S. GAAP and should not be
considered as an alternative to net cash provided by operating activities as an
indicator of Mettler-Toledo's performance because of the following limitations.
Limitations of Mettler-Toledo's non-GAAP measure, Free Cash Flow
Mettler-Toledo's non-GAAP measure, Free Cash Flow, has certain material
limitations as follows:
• It includes purchases of property, plant and equipment, which is not
considered to be a component of net cash provided by operating activities
under U.S. GAAP. Therefore any measure that includes purchases of
property, plant and equipment has material limitations.
• It excludes restructuring payments, excess tax benefits from share-based payment arrangements and proceeds from the sale of property, plant and equipment, which are considered to be components of net cash provided by operating activities under U.S. GAAP. Therefore any measure that excludes these items has material limitations.
Adjusted Earnings per Share, Adjusted Operating Income and Free Cash Flow should
not be relied upon to the exclusion of U.S. GAAP financial measures, but reflect
additional measures of comparability and means of viewing aspects of
Mettler-Toledo's operations that, when viewed together with its U.S. GAAP
results and the accompanying reconciliations to net earnings, net cash provided
by operating activities and diluted earnings per share, provide a more complete
understanding of factors and trends affecting its business.
Because Adjusted Earnings per Share, Adjusted Operating Income and Free Cash
Flow are not standardized, it may not be possible to compare with other
companies' non-GAAP financial measures having the same or similar names. We
strongly encourage investors to review our financial statements and publicly
filed reports in their entirety and not to rely on any single financial measure.
The Release provides a reconciliation of Adjusted Earnings per Share, Adjusted
Operating Income and Free Cash Flow to the most comparable financial measures
recorded under U.S. GAAP.
Exhibit No. Description
99.1 Press release, dated April 30, 2009 issued by Mettler-Toledo
International Inc.
|
|
|