Airgas Reports Fourth Quarter Earnings of $0.31 Per Share.RADNOR Radnor may refer to:
See: New York Stock Exchange :ARG See argument. arg - argument ), the largest U.S. 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, welding welding, process for joining separate pieces of metal in a continuous metallic bond. Cold-pressure welding is accomplished by the application of high pressure at room temperature; forge welding (forging) is done by means of hammering, with the addition of heat. , safety and related products, today reported strong growth in sales, operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. and net earnings for its fourth quarter ended March 31, 2005. Net earnings for the quarter grew 12% to $24.2 million, or $0.31 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 $21.7 million, or $0.29 per diluted share, in the same period a year ago. The current quarter includes expenses of $0.02 per diluted share related to the integration of the U.S. packaged gas business acquired from The BOC (Bell Operating Company) One of 22 companies that was formerly part of AT&T and later organized into seven regional companies. See RBOC. Group and the separation package for the Company's former Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. . Fourth quarter sales increased 26% to $656 million reflecting strong 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. and price gains, as well as acquisitions. Total same-store sales were up 11% compared to the same quarter a year ago, with gas and rent up 8% and hardgoods up 14%. These results reflect continued improvement in manufacturing and other industrial market segments. "We are very encouraged by our sales momentum, especially the strength in gases, and by the continued trend into April," said Airgas Chairman and Chief Executive Officer Peter McCausland. "The price increases initiated in March are gaining traction Traction Definition Traction is the use of a pulling force to treat muscle and skeleton disorders. Purpose Traction is usually applied to the arms and legs, the neck, the backbone, or the pelvis. and helping to offset cost pressures related to the purchase and delivery of our products." Fiscal 2005 net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight increased 27% to $2.4 billion. Net earnings for the year ended March 31, 2005 were $1.20 per diluted share compared to prior year results of $1.07 per diluted share. The results for the year ended March 31, 2005 include expenses of $0.05 per diluted share related to the integration of the U.S. packaged gas business acquired from The BOC Group and the separation package for the Company's former Chief Operating Officer. The results for the year ended March 31, 2004 included a non-recurring 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. gain of $1.7 million, or $0.02 per diluted share, at National Welders Supply Company, and an after-tax $480 thousand special charge recovery related to a revised estimate Revised estimate The third estimate of GDP released about three months after the measurement period. on prior years' restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. . Also included in the year ended March 31, 2004 are insurance-related losses of $2.8 million ($1.7 million after tax), or $0.02 per diluted share, for previously announced incidents at two of the Company's facilities. "We grew fiscal 2005 earnings per share by 18%, excluding the non-recurring gains and charges noted herein, reflecting very good business trends," commented McCausland. "We are seeing strength across our business units and customer segments. Additionally, we surpassed our growth goals for our strategic platforms of bulk gas, safety products and strategic accounts, and also had good growth in medical and specialty gas. We expect continued strength in the year ahead." Year to date, adjusted debt increased by $145 million as a result of acquisitions, primarily the BOC acquisition. Free cash flow for the year ended March 31, 2005 was $63 million, the majority of which was generated in the fourth quarter, compared to $115 million in the comparable prior year. The year over year decline is mainly attributed to increased inventories and accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying in connection with overall sales growth and the BOC acquisition, as well as capital expenditures to support the growth in strategic products. After-tax cash flow for the comparable periods was $218 million versus $187 million. The definition of free cash flow, after-tax cash flow and adjusted debt, as well as a reconciliation of each to the Consolidated Financial Statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge are attached. Additionally, a reconciliation between the growth in earnings per share and the non-GAAP growth in earnings per share excluding certain gains and charges is also included. McCausland continued, "We expect earnings per diluted share of $1.43 to $1.50 in fiscal 2006, with $0.33 to $0.36 in the first quarter. We expect continued strong execution across the board, with improved operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: and return on capital as we continue to drive our pricing initiative and complete the BOC integration." The Company will conduct an earnings teleconference on Thursday Thursday: see week. , May 5, 2005, beginning at 11:00 a.m. Eastern Time. Access the teleconference by calling (888) 202-2422. This press release, slides to be presented during the Company's teleconference and information about how to access a live and on-demand On-Demand refers to a service or feature which addresses the user's need for instant gratification and immediacy of use. In most cases the value proposition for an on-demand service is wrapped up in the fact that the user or consumer of the service avoids a significant up-front webcast of the teleconference are available in the 'Investor Info' section on the Company's 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 site www.airgas.com. The telephone replay will be accessible for one week starting May 5 at 1 p.m. Eastern Time by calling (888) 203-1112 and entering passcode 7884986. About Airgas, Inc. Airgas, Inc. is the largest U.S. distributor of industrial, medical and specialty gases, welding, safety and related products. Its integrated network A network that supports both data and voice and/or different networking protocols. See converged network and new public network. of nearly 900 locations includes branches, retail stores, gas fill plants, specialty gas labs, production facilities and distribution centers. Airgas also distributes its products and services through eBusiness See e-business. , catalog catalog, descriptive list, on cards or in a book, of the contents of a library. Assurbanipal's library at Nineveh was cataloged on shelves of slate. The first known subject catalog was compiled by Callimachus at the Alexandrian Library in the 3d cent. B.C. and telesales telesales Noun the selling of a commodity or service by telephone telesales npl → televentas fpl telesales npl → channels. Its national scale and strong local presence offer a competitive edge to its diversified diversified (di·verˑ·s customer base. For more information, please visit 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. These statements include, but are not limited to, statements regarding: price increases gaining traction and helping to offset cost pressures related to the purchase and delivery of the Company's products; seeing strength across business units and customer segments; expecting continued strength in the year ahead; expecting earnings per diluted share of $1.43 to $1.50 in fiscal 2006 and $0.33 to $0.36 in the first quarter; expecting continued strong execution across the board, with improved operating margins and return on capital as the Company continues to drive its pricing initiatives and completes the BOC integration. The Company 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 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: the Company's inability to implement price increases; supply cost pressures; the Company's successful integration of its acquisitions, including the BOC acquisition; increased industry competition; an economic downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. ; adverse changes in customer buying patterns; significant fluctuations in interest rates; political and economic uncertainties associated with current world events; 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, 2004 and Forms 10-Q dated June June: see month. 30, 2004, September September: see month. 30, 2004, and December December: see month. 31, 2004, 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, 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. consolidated balance sheets consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. , consolidated statements of cash flows, and a reconciliation of non-GAAP financial measures follow.
AIRGAS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(Amounts in thousands, except per share data)
Three Months Ended Year Ended
March 31, March 31,
2005 2004 (d) 2005 2004 (d)
--------- --------- ----------- -----------
Net sales $656,069 $522,091 $2,411,409 $1,895,468
--------- --------- ----------- -----------
Costs and expenses:
Cost of products sold
(excl. deprec.) 323,640 253,587 1,179,045 908,681
Selling, distribution
and administrative
expenses 248,940 198,736 917,547 731,827
Depreciation 29,283 23,318 106,120 82,567
Amortization 1,319 1,154 5,464 5,389
Special charges
(recoveries) (a) -- (776) -- (776)
--------- --------- ----------- -----------
Total costs and
expenses 603,182 476,019 2,208,176 1,727,688
--------- --------- ----------- -----------
Operating income 52,887 46,072 203,233 167,780
Interest expense, net (13,285) (11,367) (51,245) (42,357)
Discount on securitization
of trade receivables (b) (1,495) (797) (4,711) (3,264)
Other income (expense),
net 434 1,056 1,136 1,473
--------- --------- ----------- -----------
Earnings before income tax
expense, minority
interest & equity
earnings 38,541 34,964 148,413 123,632
Income tax expense (13,933) (12,852) (54,583) (47,012)
Minority interest in
earnings of consolidated
affiliate (c) (452) (452) (1,808) (452)
Equity earnings of
unconsolidated
affiliate (c) -- -- -- 4,024
--------- --------- ----------- -----------
Net earnings $ 24,156 $ 21,660 $ 92,022 $ 80,192
========= ========= =========== ===========
Basic earnings per share $ 0.32 $ 0.29 $ 1.23 $ 1.10
Diluted earnings per share $ 0.31 $ 0.29 $ 1.20 $ 1.07
Weighted average shares
outstanding:
Basic 75,600 73,600 74,900 72,800
Diluted 77,600 75,700 77,000 74,700
See attached notes.
AIRGAS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
March 31, March 31,
2005 2004(d)
----------- -----------
ASSETS
Cash $ 32,640 $ 25,062
Trade accounts receivable, net (b) 148,834 107,013
Inventories, net 221,609 170,300
Deferred income tax asset, net 26,263 25,519
Prepaids and other current assets 36,911 28,463
----------- -----------
TOTAL CURRENT ASSETS 466,257 356,357
Property, plant and equipment, net 1,269,342 1,033,926
Goodwill 511,196 504,207
Other intangible assets, net 16,507 19,733
Other non-current assets 28,561 46,383
----------- -----------
TOTAL ASSETS $2,291,863 $1,960,606
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable, trade $ 143,208 $ 114,303
Accrued expenses and other current liabilities 159,132 147,088
Current portion of long-term debt 6,948 6,140
----------- -----------
TOTAL CURRENT LIABILITIES 309,288 267,531
Long-term debt 801,635 682,698
Deferred income taxes 282,186 253,529
Other non-current liabilities 48,391 28,756
Minority interest in subsidiary 36,191 36,191
Stockholders' equity 814,172 691,901
----------- -----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $2,291,863 $1,960,606
=========== ===========
See attached notes.
AIRGAS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
Year Ended Year Ended
March 31, March 31,
2005(c) 2004(c)(d)
---------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES
Net earnings $ 92,022 $ 80,192
Adjustments to reconcile net earnings to net
cash provided by operating activities:
Depreciation 106,120 82,567
Amortization 5,464 5,389
Deferred income taxes 31,853 23,172
Equity in earnings of unconsolidated affiliate -- (4,024)
Gain on divestiture (360) --
Gain on sales of plant and equipment (321) (837)
Minority interest in earnings of consolidated
affiliate 1,808 452
Stock issued for employee stock purchase plan 9,907 6,889
Changes in assets and liabilities, excluding
effects of business acquisitions and
divestitures:
Securitization of trade receivables 27,300 3,700
Trade receivables, net (39,583) (15,901)
Inventories, net (32,356) (5,586)
Prepaid expenses and other current assets (8,149) 10,146
Accounts payable, trade 27,984 20,845
Accrued expenses and other current liabilities (574) 4,687
Other assets 3,387 1,413
Other liabilities (2,185) (2,425)
---------- -----------
Net cash provided by operating activities 222,317 210,679
---------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures (167,977) (93,749)
Proceeds from sales of plant and equipment 5,361 5,347
Proceeds from divestitures 828 --
Business acquisitions, holdbacks and other
settlements of acquisition related
liabilities (191,820) (34,907)
Management fees from unconsolidated affiliate -- 724
Other, net 171 (1,369)
---------- -----------
Net cash used in investing activities (353,437) (123,954)
---------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings 621,450 414,297
Repayment of debt (494,684) (485,004)
Financing costs (2,531) (2,737)
Termination of interest rate hedge 3,948 --
Minority interest (1,808) (452)
Exercise of stock options 20,374 13,130
Dividends paid to stockholders (13,643) (11,801)
Cash overdraft 5,592 (10,516)
---------- -----------
Net cash provided by (used in) financing
activities 138,698 (83,083)
---------- -----------
Change in cash $ 7,578 $ 3,642
Cash - Beginning of period 25,062 21,420
---------- -----------
Cash - End of period $ 32,640 $ 25,062
========== ===========
See attached notes.
Notes:
(a) Special charge recoveries of $776 thousand ($480 thousand after
tax) for the quarter and year ended March 31, 2004 consist of the
reversal of the excess portion of prior years' restructuring
charges. The special charge recoveries represent a change in
estimate related to facility exit costs.
(b) The Company participates in a securitization agreement with two
commercial banks to sell up to $225 million of qualified trade
receivables. Net proceeds from the securitization were used to
reduce borrowings under the Company's revolving credit facilities.
The amount of outstanding receivables under the agreement was
$189.9 million and $162.6 million at March 31, 2005 and March 31,
2004, respectively.
(c) Effective December 31, 2003, the Company elected to adopt
Financial Accounting Standards Board Interpretation No. 46R,
"Consolidation of Variable Interest Entities," ("FIN 46R"), as it
applies to its joint venture with National Welders Supply Company,
Inc. ("NWS"), a producer and distributor of industrial gases based
in Charlotte, North Carolina. For the nine months ended December
31, 2003, NWS' operating results were reflected as "Equity in
Earnings of Unconsolidated Affiliate." Beginning January 1, 2004
and for the year ended March 31, 2005, the operating results of
NWS were reported broadly across the income statement in the "All
Other Operations" business segment. NWS contributed sales and
operating income in each period as follows:
Quarter and
Year Ended Year Ended
March 31, 2005 March 31, 2004
------------------ -------------------
Total Sales $167,473 $39,170
Total Operating Income 15,662 3,390
The cash flows of NWS, in excess of a management fee, are not
available for the general use of the Company. Rather, these cash flows
are used by NWS for operations, capital expenditures, acquisitions and
to satisfy financial obligations, which are non-recourse to the
Company. The consolidated cash flows for the following periods reflect
the following sources and uses of cash associated with NWS:
Year Ended Year Ended
March 31, March 31,
2005 2004
------------ -------------
Net cash provided by operating activities $19,612 $9,831
Net cash used in investing activities (29,240) (1,783)
Net cash provided by (used in) financing
activities 9,500 (8,039)
Change in cash (128) 9
------------ -------------
Management fee paid to the Company, which
is eliminated in consolidation 1,089 249
(d) Certain reclassifications of prior period amounts have been made
to conform with the current year presentation, including the
presentation of depository cash, cash overdrafts, minority
interest and equity in earnings of unconsolidated affiliates. In
the current year presentation, the depository cash and cash
overdrafts are presented on a gross basis. Previously, the amounts
were presented net. Minority interest and equity earnings
recognized in prior periods related to NWS were reclassified from
pre-tax income and presented net of tax below income tax expense.
(e) Business segment information for the Company's Distribution and
All Other Operations segments is shown below:
Three Months Ended March 31, 2005
--------------------------------------
All
Other
(In thousands) Dist. Ops. Elim Combined
--------- -------- --------- ---------
Gas and rent $292,538 $79,175 $(13,390) $358,323
Hardgoods 281,166 17,473 (893) 297,746
--------- -------- --------- ---------
Total net sales 573,704 96,648 (14,283) 656,069
Cost of products sold, excl.
deprec. expense 293,030 44,893 (14,283) 323,640
Selling, distribution and
administrative expenses 212,747 36,193 248,940
Deprec. & amort. expense 24,016 6,586 30,602
Special charges (recoveries) -- -- --
--------- -------- ---------
Operating income 43,911 8,976 52,887
--------- -------- ---------
Three Months Ended March 31, 2004
--------------------------------------
All
Other
(In thousands) Dist. Ops. Elim Combined
--------- -------- --------- ---------
Gas and rent $226,515 $70,094 $(10,526) $286,083
Hardgoods 221,266 15,703 (961) 236,008
--------- -------- --------- ---------
Total net sales 447,781 85,797 (11,487) 522,091
Cost of products sold, excl.
deprec. expense 225,960 39,114 (11,487) 253,587
Selling, distribution and
administrative expenses 165,602 33,134 198,736
Deprec. & amort. expense 18,856 5,616 24,472
Special charges (recoveries) (776) -- (776)
--------- -------- ---------
Operating income 38,139 7,933 46,072
--------- -------- ---------
Year Ended March 31, 2005
-------------------------------------------
All Other
(In thousands) Dist. Ops. Elim Combined
----------- --------- --------- -----------
Gas and rent $1,056,661 $318,748 $(49,300) $1,326,109
Hardgoods 1,022,078 66,863 (3,641) 1,085,300
----------- --------- --------- -----------
Total net sales 2,078,739 385,611 (52,941) 2,411,409
Cost of products sold,
excl. deprec. expense 1,057,547 174,439 (52,941) 1,179,045
Selling, distribution and
administrative expenses 776,306 141,241 917,547
Deprec. & amort. expense 86,868 24,716 111,584
Special charges
(recoveries) -- -- --
----------- --------- -----------
Operating income 158,018 45,215 203,233
----------- --------- -----------
Year Ended March 31, 2004
-------------------------------------------
All Other
(In thousands) Dist. Ops. Elim Combined
----------- --------- --------- -----------
Gas and rent $882,585 $216,166 $(39,944) $1,058,807
Hardgoods 819,886 19,760 (2,985) 836,661
----------- --------- --------- -----------
Total net sales 1,702,471 235,926 (42,929) 1,895,468
Cost of products sold,
excl. deprec. expense 845,440 106,170 (42,929) 908,681
Selling, distribution and
administrative expenses 648,919 82,908 731,827
Deprec. & amort. expense 72,439 15,517 87,956
Special charges
(recoveries) (776) -- (776)
----------- --------- -----------
Operating income 136,449 31,331 167,780
----------- --------- -----------
Reconciliation of Non-GAAP Financial Measures (Unaudited)
---------------------------------------------------------
Free Cash Flow:
---------------
Reconciliation of net cash provided by operating activities per the
Consolidated Statement of Cash Flows to Free Cash Flow:
Year Ended Year Ended
(Amounts in thousands) March 31, 2005 March 31, 2004
-------------- --------------
Net cash provided by operating
activities $222,317 $210,679
Less net cash provided by operating
activities of NWS (1) (19,612) (9,831)
Plus:
Management fees paid by NWS (1) 1,089 249
Operating lease buyouts 24,130 4,011
Proceeds from sale of PP&E 5,361 5,347
Less:
Cash provided by the securitization of
trade receivables (27,300) (3,700)
Capital expenditures (167,977) (93,749)
Add back capital expenditures of
NWS (1) 24,584 2,265
-------------- --------------
Free Cash Flow $62,592 $115,271
============== ==============
Free Cash Flow provides investors meaningful insight into the
Company's ability to generate cash from operations, which can be used
at management's discretion for acquisitions, the prepayment of debt or
to support other investing and financing activities.
After-Tax Cash Flow:
--------------------
Reconciliation of net cash provided by operating activities per the
Consolidated Statement of Cash Flows to After-Tax Cash Flow:
Year Ended Year Ended
(Amounts in thousands) March 31, 2005 March 31, 2004
-------------- --------------
Net cash provided by operating
activities $222,317 $210,679
Less After-Tax Cash Flow of NWS (1) (17,056) (4,209)
Add back:
Cash used for (provided by) working
capital components and other assets
and liabilities 51,476 (13,179)
Gain on divestiture 360 --
Gain on sales of plant and equipment 321 837
Equity in earnings of unconsolidated
affiliates -- 4,024
Less:
Cash provided by the securitization of
trade receivables (27,300) (3,700)
Stock issued for employee stock
purchase plan (9,907) (6,889)
Minority interest in earnings (1,808) (452)
-------------- --------------
After-Tax Cash Flow $218,403 $187,111
============== ==============
After-Tax Cash Flow is defined as net earnings plus depreciation,
amortization and deferred tax expense. After-Tax Cash Flow provides
investors meaningful insight into the Company's ability to generate
cash from operations to support working capital requirements, capital
expenditures and financial obligations.
(1) National Welders Supply Co. ("NWS") is a corporate joint venture
meeting the definition of a variable interest entity and for which
the Company is the primary beneficiary as described under FIN 46R.
NWS was consolidated effective December 31, 2003. Prior to
January 1, 2004, the Company reported the results of NWS in
"Equity in Earnings of Unconsolidated Affiliate." The liabilities
of NWS are non-recourse to the Company. Likewise, the cash flows
in excess of the management fee paid by NWS are not available to
the Company. Accordingly, the cash flows of NWS have been excluded
from the Company's non-GAAP liquidity measures.
Adjusted Debt:
--------------
Reconciliation of the change in debt per the Balance Sheet to the
increase in debt adjusted for the non-recourse debt of NWS,
off-balance sheet financing and non-cash interest rate hedging
("adjusted debt"):
March 31, March 31, Change in
(Amounts in thousands) 2005 2004 Adjusted Debt
--------- --------- -------------
Debt $808,583 $688,838 $119,745
Adjustments to Debt:
Securitization of trade
receivables 189,900 162,600 27,300
National Welders - non-recourse
debt (2) (66,019) (53,823) (12,196)
Interest rate swap agreements (3,948) (13,832) 9,884
--------- --------- -------------
Adjusted Debt $928,516 $783,783 $144,733
========= ========= =============
(2) In calculating the Adjusted Debt measure, the debt of the NWS
joint venture has been excluded because the debt is non-recourse
to Airgas.
The Company uses Adjusted Debt to provide investors with a more
accurate and meaningful measure of the change in the Company's
obligation to repay debt by adjusting for the non-recourse debt of
NWS, non-cash interest rate hedging and funds received (or repaid)
under the trade receivables securitization program.
Growth In Fiscal Year Earnings:
-------------------------------
Year Ended Year Ended
March 31, 2005 March 31, 2004 Increase
-------------- -------------- --------
Diluted earnings per share as
reported $1.20 $1.07 12%
BOC integration costs .04 --
COO separation agreement .01 --
Casualty insurance loss -- .02
NWS non-recurring gain -- (.02)
Special charge recoveries -- (.01)
-------------- --------------
Diluted earnings per share,
excluding certain gains and
charges $1.25 $1.06 18%
============== ============== ========
The Company believes that diluted earnings per share, excluding
certain gains and charges noted above, are more indicative of the
Company's on-going operations and provide investors meaningful trend
information.
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