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Quotes & Info
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| MTD > SEC Filings for MTD > Form 8-K on 6-Feb-2013 | All Recent SEC Filings |
6-Feb-2013
Results of Operations and Financial Condition, Financial Statem
Non-GAAP Financial Measures
Mettler-Toledo supplements its U.S. GAAP results with non-GAAP financial
measures. The principal non-GAAP financial measures Mettler-Toledo uses are
Adjusted Earnings per Share, Adjusted Operating Income, Free Cash Flow and Local
Currency Sales Growth.
Adjusted Earnings per Share
Mettler-Toledo defines Adjusted Earnings per Share as diluted earnings per
common share excluding certain one-time discrete tax items, amortization of
purchased intangible assets, net of tax, restructuring charges, net of tax and
certain other one-time charges, net of tax. The most directly comparable U.S.
GAAP financial measure is diluted earnings per common share.
Mettler-Toledo believes that Adjusted Earnings per Share is important
supplemental information for investors. Mettler-Toledo uses this measure because
it excludes certain one-time discrete tax items, amortization of purchased
intangibles, net of tax, restructuring charges, net of tax and certain other
one-time charges, net of tax, which management believes are not directly related
to current and ongoing operations thereby providing investors with information
that helps to compare ongoing operating performance.
Adjusted Earnings per Share is used in addition to and in conjunction with
results presented in accordance with U.S. GAAP. Adjusted Earnings per Share is
not intended to represent diluted earnings per common share under U.S. GAAP and
should not be considered as an alternative to diluted earnings per common share
as an indicator of Mettler-Toledo's performance because of the following
limitations.
Limitations of Mettler-Toledo's non-GAAP measure, Adjusted Earnings per Share
Mettler-Toledo's non-GAAP measure, Adjusted Earnings per Share, has certain
material limitations as follows:
It does not include certain one-time discrete tax items, amortization expense of
purchased intangibles, net of tax, restructuring charges, net of tax and certain
other one-time charges, net of tax. Because one-time discrete tax items,
amortization of purchased intangibles, restructuring charges and certain other
one-time charges are components of diluted earnings per share under U.S. GAAP,
any measure that excludes one-time discrete tax items, amortization of purchased
intangibles, restructuring charges and certain other one-time charges, has
material limitations.
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, restructuring charges and 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,
restructuring charges and 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.
• It excludes restructuring charges. Because restructuring charges are a
component of operating income under U.S. GAAP, any measure that excludes
restructuring charges, has material limitations.
Free Cash Flow
Mettler-Toledo defines Free Cash Flow as net cash provided by operating
activities including proceeds from the sale of property, plant and equipment,
less capital expenditures, before restructuring payments and excess tax benefits
from share-based payment arrangements. 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 proceeds from the sale of property, plant and equipment and
purchases of property, plant and equipment, which are not considered to be
components of net cash provided by operating activities under U.S. GAAP.
Therefore any measure that includes proceeds from the sale of property,
plant and equipment and purchases of property, plant and equipment has
material limitations.
• It excludes restructuring payments and excess tax benefits from share-based
payment arrangements, 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.
Local Currency Sales Growth
Mettler-Toledo defines Local Currency Sales Growth as sales growth excluding the
effect of currency exchange rate fluctuations that result from translating
activity outside of the United States into U.S. dollars. The most directly
comparable U.S. GAAP financial measure is U.S. dollar sales growth.
Mettler-Toledo believes that Local Currency Sales Growth is important
supplemental information for investors. Mettler-Toledo believes local currency
information provides a helpful assessment of business performance and a useful
measure of results between periods.
Local Currency Sales Growth is used in addition to and in conjunction with
results presented in accordance with U.S. GAAP. Local Currency Sales Growth is
not intended to represent U.S. dollar sales growth under U.S. GAAP and should
not be considered as an alternative to U.S. dollar sales growth as an indicator
of Mettler-Toledo's performance because of the following limitations.
Limitations of Mettler-Toledo's non-GAAP measure, Local Currency Sales Growth
Mettler-Toledo's non-GAAP measure, Local Currency Sales Growth, has certain
material limitations as follows:
It does not include the effect of currency exchange rate fluctuations that
result from translating activity outside of the United States into U.S. dollars.
Because the effect of changes in foreign currency exchange rates is a component
of U.S. dollar sales growth under U.S. GAAP, any measure that excludes the
effect of changes in foreign currency exchange rates, has material limitations.
Adjusted Earnings per Share, Adjusted Operating Income, Free Cash Flow and Local
Currency Sales Growth 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, Free Cash Flow
and Local Currency Sales Growth 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. The Release also presents Local Currency Sales Growth
in conjunction with its most comparable financial measure recorded under U.S.
GAAP.
Exhibit No. Description
Press release, dated February 6, 2013, issued by Mettler-Toledo
99.1 International Inc.
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