Airgas, Inc. Reports Second Quarter Results.RADNOR Radnor may refer to:
-- Sales Up 10% in Quarter -- After-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. Cash Flow Up 8% in Quarter -- 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. Expenses Continue to Impact Profits 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 ) Thursday Thursday: see week. reported sales of $397 million for the quarter ended September September: see month. 30, 1998, an increase of 10% from $360 million in the second quarter of last year. After-tax cash flow (net earnings plus depreciation, amortization and deferred income taxes) increased 8% to $35 million, or $.49 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, compared to $32.4 million, or $.46 per diluted share, for the same quarter last year. Net earnings for the second quarter of fiscal 1999 were $10.5 million, or $.15 per diluted share, compared to $11.3 million (excluding non-recurring gains), or $.16 per diluted share, a year ago. Including non-recurring gains, net earnings for the second quarter ended September 30, 1997, were $21.7 million, or $.31 per diluted share. For the six months ended September 30, 1998, sales increased 15% to $797 million compared to sales of $692 million in the same period last year. After-tax cash flow increased 8% to $69.9 million, or $.97 per diluted share, for the six months ended September 30, 1998, compared to $64.7 million, or $.92 per diluted share, in the same period last year. Net earnings were $21.2 million, or $.29 per diluted share (excluding non-recurring gains), for the six months ended September 30, 1998, compared to net earnings of $23.5 million, or $.34 per diluted share (excluding non-recurring gains), in the same period a year ago. Direct repositioning expenditures, primarily for computer conversions and upgrades, facility-related costs and personnel expenses, impacted earnings by approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $4.6 million, or $.04 per diluted share, and $8.4 million, or $.07 per diluted share, in the three and six month periods ended September 30, 1998, respectively. Peter McCausland, Airgas' Chairman and Chief Executive Officer, said "This was another quarter of important progress toward our goal of becoming a multi-billion dollar, world-class world-class adj. 1. Ranking among the foremost in the world; of an international standard of excellence; of the highest order: a world-class figure skater. 2. , distribution company. Sales increased 10%, and cash flow 8%, over last year's quarter. Considering the challenging economic environment, severe weather impacting our Gulf coast operations and the expense and distraction Distraction Divination (See OMEN.) Porlock a “person from Porlock” interrupted Coleridge while he was recollecting the dream on which he based “Kubla Khan”. [Br. Lit.: Poems of Coleridge in Magill IV, 756] of our repositioning efforts, we were especially pleased to see continuing cash flow growth and a 6% increase in gas/rent 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. . Overall, Distribution same-store sales increased 2% in the quarter. While profits continue to be impacted by direct and indirect repositioning expenses, our Repositioning Airgas For Growth initiative is on schedule." Airgas, Inc. is the largest distributor of industrial, medical and specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. gases and related equipment 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. . Its distributor network includes over 700 locations in 44 states. 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, continued growth in same-store sales, costs and potential disruptive disruptive /dis·rup·tive/ (-tiv) 1. bursting apart; rending. 2. causing confusion or disorder. effects of the "Repositioning for Growth" initiative, implementation of information technology projects, any potential problems relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc Year 2000 matters, the success and timing of intended divestitures and other factors described in the Company's reports, including Form 10-Q Form 10-Q See 10-Q. dated June June: see month. 30, 1998, filed by the Company with the Securities and Exchange Commission. Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: 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 on pages 3, 4 and 5. -0-
AIRGAS, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
(Amounts in thousands, except per share data)
(Unaudited)
Three Months Ended Six Months Ended
September 30, September 30,
1998 1997 1998 1997
---- ---- ---- ----
Net sales:
Distribution $288,997 $268,168 $580,959 $539,437
Direct Industrial 65,211 61,216 133,802 98,061
Manufacturing 42,384 30,972 82,604 54,270
-------- -------- -------- --------
Total net sales 396,592 360,356 797,365 691,768
-------- -------- -------- --------
Costs and expenses:
Cost of products sold (excluding
depreciation, depletion and
amortization)
Distribution 144,725 135,011 291,402 272,474
Direct Industrial 48,064 44,966 98,738 70,971
Manufacturing 16,063 14,404 34,208 25,690
Selling, distribution
and administrative
expenses 134,201 114,199 265,452 219,542
Depreciation, depletion
and amortization 21,748 18,776 43,345 36,591
Special items (a),(b) - (14,500) (1,000) (14,500)
-------- -------- -------- --------
Total costs and
expenses 364,801 312,856 732,145 610,768
-------- -------- -------- --------
Operating income:
Distribution 25,143 27,182 52,799 55,876
Direct Industrial 929 1,343 1,813 2,448
Manufacturing 5,719 4,475 9,608 8,176
Special items (a),(b) - 14,500 1,000 14,500
-------- -------- -------- --------
Total operating
income 31,791 47,500 65,220 81,000
Interest expense, net (15,720) (13,670) (30,526) (25,778)
Other income, net 682 1,573 870 2,046
Equity in earnings of
unconsolidated
affiliates 1,222 434 1,976 319
Minority interest 27 (309) (39) (618)
-------- -------- -------- --------
Earnings before income
taxes 18,002 35,528 37,501 56,969
Income tax expense 7,522 13,853 15,746 23,068
-------- -------- -------- --------
Net earnings $ 10,480 $ 21,675 $ 21,755 $ 33,901
======== ======== ======== ========
Net earnings
(excluding non-recurring
gains)(c) $ 10,480 $ 11,268 $ 21,180 $ 23,494
======== ======== ======== ========
Per share data:
Basic earnings per
share $ .15 $ .32 $ .31 $ .50
Diluted earnings per
share $ .15 $ .31 $ .30 $ .48
Per share data:
(excluding non-recurring
gains)(c)
Basic earnings per
share $ .15 $ .16 $ .30 $ .35
Diluted earnings per
share $ .15 $ .16 $ .29 $ .34
Weighted average shares outstanding:
Basic 70,000 68,530 70,100 67,700
Diluted 71,700 70,950 71,800 70,100
(a) The results for the second quarter and year-to-date ended
September 30, 1997 include a $14.5 million ($9.4 million
after-tax) gain from a partial recovery of refrigerant losses.
(b) Represents the reversal of $1 million excess reserves that were
established at March 31, 1998 in connection with the divestiture
of two non-core businesses.
(c) The results for the six months ended September 30, 1998 excluded
the effect of the $1 million ($570 thousand after-tax) reversal
of excess reserves related to the first quarter divestiture of
two non-core businesses.
The results for the second quarter and year-to-date ended
September 30, 1997, excluded the after-tax effect of the gain from
partial recovery of refrigerant losses of $9.4 million (see footnote
(a)) and the after-tax gain of $980 thousand related to the sale of a
non-core business.
AIRGAS, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(Amounts in thousands)
(Unaudited)
September 30, March 31,
1998 1998
---- ----
ASSETS
Trade accounts receivable, net $ 204,833 $ 186,342
Inventories 165,863 154,937
Prepaids and other current assets 25,042 25,555
---------- ----------
TOTAL CURRENT ASSETS 395,738 366,834
Property, plant and equipment, net 715,142 687,304
Goodwill, net 431,460 410,753
Other non-current assets, net 177,691 176,583
---------- ----------
TOTAL ASSETS $1,720,031 $1,641,474
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current portion of long-term debt $ 14,064 $ 12,150
Accounts payable, trade 83,721 84,602
Accrued expenses and other current
liabilities 113,304 128,806
---------- ----------
TOTAL CURRENT LIABILITIES 211,089 225,558
Long-term debt 906,356 830,845
Deferred income taxes 129,266 121,356
Other non-current liabilities 35,139 36,842
Stockholders' equity 438,181 426,873
---------- ----------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $1,720,031 $1,641,474
========== ==========
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