Airgas, Inc. Reports First Quarter Results.RADNOR Radnor may refer to:
Airgas Airgas, Inc. (NYSE: ARG), headquartered in Radnor Township, Pennsylvania, through its subsidiaries, is the largest U.S. distributor of industrial, medical and specialty gases (delivered in packaged or cylinder form), and hardgoods (welding, safety and related products). Inc. (NYSE NYSE See: New York Stock Exchange - ARG See argument. arg - argument ) today reported net earnings for the quarter ended June 30, 1999 of $9.7 million, or $.14 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, excluding a charge of $.01 per diluted share related to a required accounting change. Net earnings, excluding a non-recurring benefit of $.01 per diluted share, were $10.7 million, or $.15 per diluted share, a year ago. After-tax cash flow (net earnings, excluding special items, plus depreciation, amortization and deferred income taxes) increased to $35.2 million, or $.50 per diluted share, compared to $34.9 million, or $.48 per diluted share, in the same quarter last year. Sales for the quarter ended June 30, 1999 were $379 million compared to $401 million in the prior year. "I am pleased with our performance in the face of continued weakness in many of our markets," stated Peter McCausland, Airgas' chairman and chief executive officer. "In spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite a decline in same-store sales Same-store sales is a business term which refers to the revenue generated by one of a retail chain's specific outlets during a certain period of time (often a fiscal quarter or a particular shopping season), compared to an identical period in the past, usually in the previous year. in our Distribution segment, cost improvement actions and benefits from the integrated distribution infrastructure we are building allowed us to post an improved operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: on a sequential basis. With the computer conversions essentially complete and the rollout of our integrated distribution infrastructure well underway and on schedule, most of the `heavy lifting' is behind us. "We remain cautiously optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op for the balance of the fiscal year regarding prospects for improvement in several of the industrial segments that Airgas serves. Nevertheless, we are exercising heightened discipline in containment containment Strategic U.S. foreign policy of the late 1940s and early 1950s intended to check the expansionist designs of the Soviet Union through economic, military, diplomatic, and political means. It was conceived by George Kennan soon after World War II. of costs and capital expenditures. With our operating companies operating company A business that engages in transactions with outsiders. consolidated and now on common computer systems, we have the ability to further reduce our costs. Capital expenditures during the quarter were $14 million, down substantially from $22 million a year ago. We believe that Airgas is better positioned than ever to operate in a challenging market environment." Airgas, Inc. is the largest distributor of industrial, medical and specialty gases and related equipment and the third largest distributor of safety supplies in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . Airgas' integrated distributor network consists of approximately 700 locations, including branches, packaged gas fill plants, distribution centers, and inbound in·bound 1 adj. Bound inward; incoming: inbound commuter traffic. Adj. 1. inbound and outbound out·bound adj. Outward bound; headed away: outbound trains. Adj. 1. outbound - that is going out or leaving; "the departing train"; "an outward journey"; "outward-bound ships" telemarketing telemarketing, the practice of selling goods or services to customers by means of the telephone or of surveying consumer preferences in telephone conversations. operations. Airgas can be visited on the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the at www.airgas.com. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. This press release may contain statements that are forward-looking, as that term is defined by the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 or by the Securities and Exchange Commission in its rules, regulations and releases. Airgas intends that such forward-looking statements be subject to the safe harbors Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. created thereby. All forward-looking statements are based on current expectations regarding important risk factors, and the making of such statements should not be regarded as a representation by the Company or any other person that the results expressed therein will be achieved. Important factors that could cause actual results to differ materially from those contained in any forward-looking statement include underlying market conditions, growth in same-store sales, improvement in operating margins, the ability to grow earnings and cash flow, the ability to manage capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. , benefits from and progress of the "Repositioning repositioning Laparoscopic surgery The changing of a Pt's position during a procedure to improve access or visualization of the operative field, which may be linked to complications, as it changes anatomic planes of operation. Cf Laparoscopic surgery. " initiative, the Company's ability to reduce costs, any potential problems relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc Year 2000 matters, and other factors described in the Company's reports, including Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. dated March 31, 1999, filed by the Company with the Securities and Exchange Commission. Consolidated statements of earnings and consolidated condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. balance sheets follow. -0-
AIRGAS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(Amounts in thousands, except per share data)
(Unaudited)
Three Months Ended
June 30,
1999 1998 (a)
---- ----
Net sales:
Distribution $345,967 $360,553
Gas Operations 33,526 40,220
-------- --------
Total net sales 379,493 400,773
-------- --------
Costs and expenses:
Cost of products sold (excluding
depreciation and amortization)
Distribution 188,432 197,351
Gas Operations 12,835 19,752
Selling, distribution and
administrative expenses 126,961 129,644
Depreciation and amortization 22,166 21,597
Special charge (b) - (1,000)
-------- --------
Total costs and expenses 350,394 367,344
-------- --------
Operating income:
Distribution 26,260 28,540
Gas Operations 2,839 3,889
Special charge (b) - 1,000
-------- --------
Total operating income 29,099 33,429
Interest expense, net (13,783) (14,806)
Other income, net 157 188
Equity in earnings of unconsolidated
affiliates 1,000 754
Minority interest 65 (66)
-------- --------
Earnings before income taxes and
the cumulative effect of an
accounting change 16,538 19,499
Income tax expense 6,863 8,224
-------- --------
Earnings before the cumulative effect
of an accounting change 9,675 11,275
Cumulative effect of an accounting
change, net of taxes (c) (590) -
-------- --------
Net earnings $ 9,085 $ 11,275
======== ========
Net earnings (excluding
special items)(d) $ 9,675 $ 10,705
======== ========
Per share data:
Basic earnings per share $ .13 $ .16
Diluted earnings per share $ .13 $ .16
Per share data (excluding
special items)(d):
Basic earnings per share $ .14 $ .15
Diluted earnings per share $ .14 $ .15
Weighted average shares outstanding:
Basic 69,800 70,300
Diluted 71,100 72,100
See notes to consolidated financial statements.
Notes to consolidated financial statements:
(a) Certain reclassifications have been made to previously issued
financial statements to conform to the current presentation.
(b) Special charges of $1 million ($570 thousand after-tax) for the
quarter ended June 30, 1998 represent reserve adjustments related
to the divestiture of two non-core businesses.
(c) Effective April 1, 1999, the Company adopted Statement of
Position ("SOP") 98-5, "Reporting on the Costs of Start-up
Activities." In accordance with the SOP, in the quarter ended
June 30, 1999, the Company recorded an after-tax charge of $590
thousand as the cumulative effect of an accounting change related
to previously capitalized costs from start-up activities.
(d) Net earnings excluding the after-tax charge of $590 thousand
($.01 per diluted share) for the quarter ended June 30, 1999 (see
note (c)), and the after-tax effect of reserve adjustments of
$570 thousand ($.01 per diluted share) for the quarter ended June
30, 1998 (see note (b)).
AIRGAS, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(Amounts in thousands)
(Unaudited)
June 30, March 31,
1999 1999
---- ----
ASSETS
Trade accounts receivable, net $ 195,825 $ 195,708
Inventories, net 155,122 154,424
Deferred income tax asset, net 7,767 7,549
Prepaids and other current assets 19,947 21,161
---------- ----------
TOTAL CURRENT ASSETS 378,661 378,842
Property, plant and equipment, net 716,276 717,859
Goodwill, net 423,959 428,349
Other non-current assets, net 170,130 173,422
---------- ----------
TOTAL ASSETS $1,689,026 $1,698,472
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable, trade $ 71,909 $ 85,486
Accrued expenses and other
current liabilities 104,407 108,295
Current portion of long-term debt 20,602 19,645
---------- ----------
TOTAL CURRENT LIABILITIES 196,918 213,426
Long-term debt 850,269 847,841
Deferred income taxes 144,571 142,675
Other non-current liabilities 21,921 23,585
Stockholders' equity 475,347 470,945
---------- ----------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $1,689,026 $1,698,472
========== ==========
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