Apogent Reports First Quarter Results.Business Editors/Health/Medical Writers PORTSMOUTH Portsmouth, city, England Portsmouth, city (1991 pop. 174,218) and district, Hampshire, S England, on Spithead Channel. The district includes Portsea (naval station), Southsea (residential district and resort), and the old town of Portsmouth proper. , N.H.--(BUSINESS WIRE)--Jan. 21, 2004 Apogent Technologies Inc. (NYSE NYSE See: New York Stock Exchange : AOT AOT Agency of Transportation (Vermont, USA) AOT Ahead-of-Time AOT Assisted Outpatient Treatment AOT Aerosol Optical Thickness AOT All of Them (band) AOT As Opposed To AOT Among Other Things ), a leading manufacturer of clinical diagnostic and life science research products, today reported financial results for the first quarter ended December December: see month. 31, 2003. During the first quarter, Apogent completed the restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). activities announced in January January: see month. 2003. There were special charges associated with these consolidation activities. In addition, a charge related to the Company's previously announced debt restructuring Debt Restructuring A method used by companies with outstanding debt obligations to alter the terms of the debt agreements in order to achieve some advantage. Notes: was incurred during the quarter. To ensure clarity Clarity is the property of being clear or transparent. Clarity can refer to one's ability to clearly visualize an object or concept, as in thought, understanding, and the "mind's eye", as well as the traditional notion of visual perception, that is, with the of understanding, we have presented comparative operating results throughout this release both before and after the effects of these special items. For a reconciliation of the adjusted results to U.S. GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). , please refer to the table on page 2 of this release and to Exhibits 4 and 5. Excluding special items, adjusted income and diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the for the first quarter of fiscal 2004 were $31.4 million and $0.34, respectively. This compares to adjusted income and diluted earnings per share from continuing operations, excluding special items of $28.8 million and $0.27, respectively, for the first quarter of fiscal 2003. Including the impact of the special items, on a U.S. GAAP basis, income and diluted earnings per share from continuing operations for the first quarter were $28.5 million and $0.31, respectively. These results compare with income and diluted earnings per share from continuing operations for the first quarter of fiscal 2003 of $28.8 million and $0.27, respectively. Commenting on the financial results of the Company, Frank H. Jellinek Jellinek is a surname and may refer to:
microbiology Scientific study of microorganisms, a diverse group of simple life-forms including protozoans, algae, molds, bacteria, and viruses. businesses. Growth in the Research Group was driven by low double-digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. growth in some our life science consumable A material that is used up and needs continuous replenishment, such as paper and toner. "The low-tech end of the high-tech field!" products. As outlined during our year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. conference call, we are continuing to pursue improvements in profitability through facility consolidations and other efficiency opportunities. The results for the quarter are in line with our expectations, and we continue to feel confident about the execution of our plans for this year and beyond."
Reconciliation of Income from Continuing Operations
Three Months Ended
December 31,
(in thousands, except
per share data)
2003 2002
----------------------------------------------------------------------
U.S GAAP
Income from continuing operations $28,464 $28,815
----------------------------------------------------------------------
Diluted earnings per common share from
continuing operations $0.31 $0.27
======================================================================
Adjusted
Restructuring charges and asset impairments,
net of tax $2,873 --
Loss on the extinguishment of debt, net of tax 108 --
----------------------------------------------------------------------
Adjusted income from continuing operations $31,445 $28,815
----------------------------------------------------------------------
Adjusted diluted earnings per common share from
continuing operations $0.34 $0.27
----------------------------------------------------------------------
Weighted average diluted shares outstanding 92,039 107,010
======================================================================
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 for the first quarter were $278.6 million, compared with $257.8 million in the same period last year, an increase of 8.1%. Quarterly comparisons of net sales by business segment are as follows:
Three Months Ended
December 31,
(in thousands)
Internal
Business Segment 2003 2002 Growth Growth
----------------------------------------------------------------------
Clinical Group $129,706 $119,414 8.6% 6.6%
Research Group 148,936 138,384 7.6% 1.7%
----------------------------------------------------------------------
Total $278,642 $257,798 8.1%(1) 3.9%
======================================================================
(1) Please refer to Exhibit 6 for a breakdown of net sales growth
for the three months ended December 31, 2003.
Apogent's net sales for the quarter by geographic area were as
follows:
Three Months Ended
December 31,
(in thousands)
Geographic Area 2003 2002
----------------------------------------------------------------------
North America $198,109 $190,229
Europe 53,861 46,476
Asia 18,989 15,042
Other 7,683 6,051
----------------------------------------------------------------------
Total $278,642 $257,798
======================================================================
DETAILED FINANCIAL RESULTS Please refer to the financial statements at the end of this press release when reviewing the following financial information. As noted previously, the following has been adjusted for special items. Please refer to Exhibits 4 and 5 for a reconciliation to U.S. GAAP. Adjusted gross profit for the first quarter of fiscal 2004 was $130.7 million, versus $124.8 million for the same period last year. Adjusted gross margin was 46.9% in the first quarter of this year versus 48.4% in the first quarter of fiscal 2003. The adjustment for special items was $0.1 million for the three months ended December 31, 2003. Accordingly, without this adjustment, gross profit and margin were $130.5 million and 46.8% for the first quarter of fiscal 2004 compared with gross profit and margin of $124.8 million and 48.4% for the first quarter of fiscal 2003. Adjusted selling, general and administrative expenses for the first quarter of fiscal 2004 were $71.7 million, versus $68.6 million for the same period last year. The adjustment for special items was $4.4 million for the three months ended December 31, 2003. Accordingly, without this adjustment, selling, general and administrative expenses were $76.1 million for the first quarter of fiscal 2004 compared with $68.6 million for the first quarter of fiscal 2003. Adjusted 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. for the first quarter of 2004 was $59.0 million, compared with $56.2 million for the same period last year, an increase of 5.0%. Without the adjustments, operating income was $54.4 million for the first quarter of fiscal 2004, compared with $56.2 million for the first quarter of fiscal 2003. Adjusted earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
The Company has included information concerning Adjusted EBITDA because management believes that some investors use Adjusted EBITDA as a measure of a company's historical ability to service its debt. Adjusted EBITDA should not be considered as an alternative to, or more meaningful than, net income as an indicator Indicator Anything used to predict future financial or economic trends. Notes: In the context of technical analysis, an indicator is a mathematical calculation based on a securities price and/or volume. The result is used to predict future prices. of Apogent's operating performance or cash flows as a measure of liquidity. Adjusted EBITDA has not been prepared in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP). Adjusted EBITDA, as presented by Apogent, may not be comparable to similarly titled measures reported by other companies. Certain other non-GAAP financial measures (i.e., adjusted gross profit, adjusted gross margin, and adjusted operating income) have been provided in order to provide consistency Consistency can refer to:
Inventory was $211.5 million at the end of the first quarter. Inventory turns for the quarter were 2.6, compared with 2.6 for the fourth quarter of fiscal 2003. 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 at the end of the quarter were $172.1 million. Days sales outstanding In accountancy, Days Sales Outstanding is a company's average collection period. A low figure indicates that the company collects its outstanding receivables quickly. Typically it is looked at either quarterly or yearly (90 or 365 days). in the first quarter were 56 days compared with 55 days for the fourth quarter of fiscal 2003. SPECIAL ITEMS Restructuring expenses during the three months ended December 31, 2003 were $4.6 million. These charges were primarily related to costs associated with the consolidation of facilities and discontinuance Cessation; ending; giving up. The discontinuance of a lawsuit, also known as a dismissal or a non-suit, is the voluntary or involuntary termination of an action. DISCONTINUANCE, pleading. A chasm or interruption in the pleading. 2. of certain product lines. These charges represent the completion of the restructuring activities announced in the first quarter press release from fiscal 2003. BOND OFFERING As previously announced in December, 2003, Apogent sold $345 million of floating rate senior convertible contingent Fortuitous; dependent upon the possible occurrence of a future event, the existence of which is not assured. The word contingent denotes that there is no present interest or right but only a conditional one which will become effective upon the happening of the debt securities(SM) (CODES(SM)) due 2033 in a private placement. The convertible securities bear interest at a floating rate equal to 3-month LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). minus 125 basis points (but not less than 0% per annum Per annum Yearly. ), payable in cash. SHARE REPURCHASES Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. During the first quarter of fiscal 2004, the Company repurchased approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 4.8 million shares of common stock at an average cost of $22.98 per share. As of the end of the first quarter, the number of shares outstanding was approximately 87.5 million. In accordance with prior Board authorizations, the Company is authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: to repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. an additional 6.8 million shares through September September: see month. 30, 2005. The Company will consider repurchasing shares on an opportunistic opportunistic /op·por·tu·nis·tic/ (op?er-tldbomacn-is´tik) 1. denoting a microorganism which does not ordinarily cause disease but becomes pathogenic under certain circumstances. 2. basis. ACQUISITIONS AND DIVESTITURES On January 8, 2004, Apogent acquired certain histology-related product lines of PERK Scientific. These assets are being integrated operationally with Richard-Allan Scientific Company in Kalamazoo, Michigan “Kalamazoo” redirects here. For other uses, see Kalamazoo (disambiguation). Kalamazoo is the largest city in the southwest region of the U.S. state of Michigan. As of the 2000 census, the city had a total population of 77,145. . Net sales from this acquisition for the first full year are expected to approximate ap·prox·i·mate v. To bring together, as cut edges of tissue. adj. 1. Relating to the contact surfaces, either proximal or distal, of two adjacent teeth; proximate. 2. Close together. $2.0 million. GUIDANCE FOR THE BALANCE OF THE YEAR Guidance for the balance of the year remains unchanged. The fiscal year range has been updated to reflect the Company's performance for the first quarter.
Reporting Period EPS ($)
----------------------------------------------------------------------
First Quarter $0.34 (actual)(2)
Second Quarter 0.38 - 0.42
Third Quarter 0.39 - 0.43
Fourth Quarter 0.41 - 0.45
----------------------------------------------------------------------
Fiscal Year 2004 $1.52 - $1.64
======================================================================
(2) Amount represents adjusted earnings per share. Please refer to
Exhibit 4 for a reconciliation to U.S. GAAP earnings per share.
CONFERENCE CALL On Thursday Thursday: see week. , January 22, 2004, at 11:00 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy , Apogent will host a conference call to discuss its first quarter financial results for the period ended December 31, 2003. The dial-in numbers for the teleconference are: Domestic Callers (888) 243-0811 International Callers (703) 736-7292 The conference call will be simultaneously si·mul·ta·ne·ous adj. 1. Happening, existing, or done at the same time. See Synonyms at contemporary. 2. Mathematics audio web cast in the Investor Relations Investor relations The process by which the corporation communicates with its investors. section of Apogent's website at www.apogent.com and will be available there until February February: see month. 22, 2003. A telephone replay of the call will be available until 1:00 p.m. EST P.M. also p.m. or p.m. abbr. post meridiem Usage Note: By definition, 12 a.m. on Saturday Saturday: see week; Sabbath. , January 24, 2004. The telephone replay numbers are (888) 836-6074 (Domestic Callers) or (703) 925-2505. (International Callers), passcode 358124.
INVESTOR RELATIONS EVENTS
----------------------------------------------------------------------
Meeting Details
----------------------------------------------------------------------
Lehman Brothers Healthcare Conference March 3-5, 2004
Miami, FL
----------------------------------------------------------------------
Baird Growth Stock Conference May 4-6, 2004
Chicago, IL
----------------------------------------------------------------------
Bank of America Healthcare Conference May 19-21, 2004
Las Vegas, NV
----------------------------------------------------------------------
For further information on upcoming investor events, including
copies of the written presentation materials from investor conferences
and web cast information, please visit the Investor Relations section
of Apogent's website.
UPCOMING COMPANY TRADE SHOW EXHIBITS
----------------------------------------------------------------------
Show Details
----------------------------------------------------------------------
LabAutomation February 2-4, 2004
San Jose, CA
----------------------------------------------------------------------
Pittcon March 8-11, 2004
Chicago, IL
----------------------------------------------------------------------
Clinical Laboratory Management Association March 27-30, 2004
Atlanta, GA
----------------------------------------------------------------------
For further information on industry trade shows that Apogent's subsidiaries attend, please visit Apogent's website. ABOUT APOGENT Apogent is a diversified diversified (di·verˑ·s worldwide leader in the design, manufacture, and sale of laboratory and life science products essential for healthcare diagnostics (1) Software routines that test hardware components (memory, keyboard, disks, etc.). Diagnostics are often stored in ROM chips and activated on startup. (2) Error messages in a programmer's source code that refer to statements or syntax that the compiler or assembler and scientific research. Apogent's companies are divided into two business segments for financial reporting purposes: the Clinical Group and the Research Group. 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. Statements made in this press release regarding future matters are forward-looking statements that involve risks and uncertainties. Forward-looking statements, including those dealing with competitors COMPETITORS, French law. Persons who compete or aspire to the same office, rank or employment. As an English word in common use, it has a much wider application. Ferriere, Dict. de Dr. h.t. , customers, acquisitions, sales, profit margins, product development, financial performance, stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. intentions, and growth strategies, are based on current expectations. Our actual results may differ materially from those presently anticipated. Factors that could cause actual results to differ materially include, among others: increased borrowing rates; the inability to buy back shares at acceptable prices; financial risks associated with our holding company structure; currency and other risks associated with our international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. ; risks from rapid technological change and new product introductions; the cyclical cyclical Of or relating to a variable, such as housing starts, car sales, or the price of a certain stock, that is subject to regular or irregular up-and-down movements. nature of some of the industries and markets into which we sell our products; changes in customer purchasing patterns; competitive factors; challenges associated with acquisitions; the possibility of future restructuring or impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charges against our reported earnings; our dependence upon key distributors and original equipment manufacturers; possible disruption disruption /dis·rup·tion/ (dis-rup´shun) a morphologic defect resulting from the extrinsic breakdown of, or interference with, a developmental process. of our manufacturing operations Manufacturing operations concern the operation of a facility, as opposed to maintenance, supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations. from labor unrest labor unrest n (US) → conflictividad f laboral , shortages of critical materials or other causes; timing of product launches and other factors that may impact the success of new product introductions; unanticipated costs or other factors that could adversely impact our cost-cutting efforts; regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. and litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. risks; and the other "Cautionary Factors" contained in Item 7 of the Company's most recent 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. and our subsequent reports filed with the Securities and Exchange Commission from time to time. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise.
Exhibit 1
APOGENT TECHNOLOGIES INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands except share and per share data)
(unaudited)
December 31, September 30,
2003 2003
----------- -----------
Assets
Current assets:
Cash and cash equivalents $12,996 $18,505
Marketable securites - available
for sale 15,169 17,625
Accounts receivable (less allowance for
doubtful accounts of $3,941 and $4,286
respectively) 172,136 179,523
Inventories 211,484 206,549
Deferred income taxes 15,308 15,308
Prepaid expenses and other current assets 18,798 16,518
----------- -----------
Total current assets 445,891 454,028
Property, plant and equipment, net 278,789 282,752
Intangible assets, net 177,802 179,492
Goodwill 1,009,072 999,243
Other assets 41,266 34,476
----------- -----------
Total assets $1,952,820 $1,949,991
=========== ===========
Liabilities and Shareholders' Equity
Current liabilities:
Short-term debt and overdrafts $12,001 $12,801
Current portion of long-term debt 2,259 2,281
Accounts payable 40,484 50,220
Income taxes payable 25,873 20,053
Accrued payroll and employee benefits 32,470 34,484
Accrued interest expense 3,646 8,844
Restructuring reserve 3,640 1,758
Other current liabilities 35,614 38,883
----------- -----------
Total current liabilities 155,987 169,324
Long-term debt, less current portion 962,444 891,989
Deferred income taxes 143,183 137,683
Other liabilities 27,881 26,948
Commitments and contingent liabilities - -
Shareholders' equity:
Preferred stock, $0.01 par value; authorized
20,000,000 shares - -
Common stock, $0.01 par value; authorized
250,000,000 shares; issued 107,057,865
shares; outstanding and 87,534,709
92,013,345 shares respectively 1,071 1,071
Equity rights, 50 rights at $1.09 per right - -
Additional paid-in capital 269,010 270,119
Retained earnings 765,550 737,045
Accumulated other comprehensive
income (loss) 12,640 (3,127)
Treasury common stock, 19,523,156 and
15,044,521 shares at cost (384,946) (281,061)
----------- -----------
Total shareholders' equity 663,325 724,047
----------- -----------
Total liabilities and shareholders'
equity $1,952,820 $1,949,991
=========== ===========
Exhibit 2
APOGENT TECHNOLOGIES INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(In thousands, except per share data)
(unaudited)
Three Months Ended
December 31,
2003 2002
--------- ---------
Net sales $278,642 $257,798
Cost of sales:
Cost of products sold 147,988 132,957
Restructuring charges 145 -
--------- ---------
Total cost of sales 148,133 132,957
--------- ---------
Gross profit 130,509 124,841
Selling, general and administrative expenses 71,656 68,630
Restructuring charges and asset impairments 4,415 -
--------- ---------
Total selling, general and administrative
expenses 76,071 68,630
--------- ---------
Operating income 54,438 56,211
Other income (expense):
Interest expense, net (8,824) (10,411)
Amortization of deferred financing fees (1,323) (912)
Loss on extinguishment of debt (171) -
Other, net 355 491
--------- ---------
Income from continuing operations before
income taxes 44,475 45,379
Income taxes 16,011 16,564
--------- ---------
Income from continuing operations 28,464 28,815
Discontinued operations, net of income tax benefit 41 (82)
--------- ---------
Net income $28,505 $28,733
========= =========
Basic earnings per common share from
continuing operations $0.31 $0.27
Discontinued operations 0.00 (0.00)
--------- ---------
Basic earnings per common share $0.31 $0.27
========= =========
Diluted earnings per common share from
continuing operations $0.31 $0.27
Discontinued operations $0.00 (0.00)
--------- ---------
Diluted earnings per common share $0.31 $0.27
========= =========
Weighted average basic shares outstanding 90,729 105,719
Weighted average diluted shares outstanding 92,039 107,010
Exhibit 3
APOGENT TECHNOLOGIES INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Three months ended
December 31,
2003 2002
--------- ---------
Cash flows from operating activities:
Net income $28,505 $28,735
Adjustments to reconcile net income to net
cash provided by operating activities
Discontinued operations (41) 82
Depreciation 11,584 10,604
Amortization 5,223 4,848
Gain on sale of property plant and equipment 25 (36)
Asset impairments 1,969 -
Loss on extinguishment of debt and settlement
of securities lending 171 -
Deferred income taxes 5,500 -
Changes in assets and liabilities, net of
effects of businesses acquired:
Decrease in accounts receivable 9,634 16,657
Increase in inventories (1,915) (12,784)
Increase (decrease) in prepaid expenses
and other current assets (1,965) 634
Decrease in accounts payable (10,349) (7,067)
Increase (decrease) in income taxes
payable 4,045 (3,384)
Decrease in accrued payroll and employee
benefits (2,465) (3,780)
Decrease in accrued interest expense (5,198) (8,443)
Increase (decrease) in restructuring
reserve 1,882 (451)
Increase (decrease) in other current
liabilities (1,048) 2,753
Net change in other assets and
liabilities (4,429) (1,105)
--------- ---------
Net cash provided by operating
activities 41,128 27,263
--------- ---------
Cash flows from investing activities:
Capital expenditures (5,486) (9,897)
Proceeds from sales of property, plant and
equipment 1,967 254
Net payments for businesses acquired (856) (20,834)
Other investing activities 2,000 2,070
--------- ---------
Net cash used in investing
activities (2,375) (28,407)
--------- ---------
Cash flows from financing activities:
Proceeds from revolving credit facility 144,200 117,800
Principal payments on revolving credit
facility (417,506) (102,100)
Proceeds from long-term debt 345,000 -
Principal payments on long-term debt - 1,734
Proceeds from the exercise of stock options 3,523 -
Purchase of treasury stock (109,542) (19,730)
Financing fees paid (9,797) -
Premium paid on extinguishment of debt and
settlement of securities lending (171)
Other financing activities - (1,941)
--------- ---------
Net cash used in financing activities (44,293) (4,237)
--------- ---------
Effect of exchange rate changes on cash and cash
equivalents 31 4,809
--------- ---------
Net increase in cash and cash equivalents (5,509) (572)
Cash and cash equivalents at beginning of
period 18,505 16,327
--------- ---------
Cash and cash equivalents at end of period $12,996 $15,755
========= =========
Exhibit 4
APOGENT TECHNOLOGIES INC. AND SUBSIDIARIES
Adjusted Consolidated Statements of Operations
(In thousands, except per share data)
(unaudited)
Three months ended Three months ended
December 31, 2003 December 31, 2002
-------------------------------------------------------------
US GAAP Adjustments Adjusted US GAAP Adjustments Adjusted
Results (B) Results Results (B) Results
(A) (A)
-------------------------------------------------------------
Net sales $278,642 $- $278,642 $257,798 $- $257,798
Cost of sales 147,988 - 147,988 132,957 - 132,957
Restructuring
charge 145 (145) - - - -
--------- ------- --------- --------- --- ---------
Total cost of
sales 148,133 (145) 147,988 132,957 - 132,957
--------- ------- --------- --------- --- ---------
Gross profit 130,509 145 130,654 124,841 - 124,841
Selling, general
and
administrative
expenses 71,656 - 71,656 68,630 - 68,630
Restructuring
charges and
asset
impairments 4,415 (4,415) - - - -
--------- ------- --------- --------- --- ---------
Total selling,
general and
administrative
expenses 76,071 (4,415) 71,656 68,630 - 68,630
--------- ------- --------- --------- --- ---------
Operating
income 54,438 4,560 58,998 56,211 - 56,211
Other income
(expense):
Interest
expense (8,824) - (8,824) (10,411) - (10,411)
Amortization
of deferred
financing
fees (1,323) - (1,323) (912) - (912)
Loss on the
extinguishment
of debt (171) 171 - -
Other, net 355 - 355 491 - 491
--------- ------- --------- --------- --- ---------
Income from
continuing
operations
before income
taxes 44,475 4,731 49,206 45,379 - 45,379
Income taxes 16,011 1,750(C) 17,761 16,564 - 16,564
--------- ------- --------- --------- --- ---------
Income from
continuing
operations 28,464 2,981 31,445 28,815 - 28,815
Discontinued
operations, net
of income tax
benefit 41 41 (82) - (82)
--------- ------- --------- --------- --- ---------
Net income $28,505 $2,981 $31,486 $28,733 $- $28,733
========= ======= ========= ========= === =========
Basic earnings
per common
share from
continuing
operations $0.31 $0.35 $0.27 $0.27
Discontinued
operations 0.00 0.00 (0.00) (0.00)
--------- --------- --------- ---------
Basic earnings
per common
share $0.31 $0.35 $0.27 $0.27
========= ========= ========= =========
Diluted earnings
per common
share from
continuing
operations $0.31 $0.34 $0.27 $0.27
Discontinued
operations $0.00 $0.00 $(0.00) $(0.00)
--------- --------- --------- ---------
Diluted earnings
per common
share $0.31 $0.34 $0.27 $0.27
========= ========= ========= =========
Weighted average
basic shares
outstanding 90,729 90,729 105,719 105,719
Weighted average
diluted shares
outstanding 92,039 92,039 107,010 107,010
(A) These Adjusted Consolidated Statements of Operations are for
informational purposes only and are not in accordance with U.S.
generally accepted accounting principles (GAAP). These statements
exclude the impact of the special items.
(B) Reflects the impact of restructuring charges, asset impairments
and loss on extinguishment of debt.
(C) The tax rate used for adjustments is based on the tax rate in the
jurisdiction in which the income or expense arose.
Exhibit 5
Calculation of Adjusted EBITDA
(historical amounts have been restated to reflect discontinued
operations)
(unaudited)
Three Months Ended
December 31,
2003 2002
-------- --------
Net income $28,505 $28,733
Less: Discontinued operations 41 (82)
Loss on the extinguishment of debt (171) -
Restructuring charges and asset
impairments (4,560) -
Income Taxes 16,011 16,564
-----------------
Adjusted Income from continuing operations
before income taxes 49,206 45,379
Interest expense 8,824 10,411
Depreciation 11,584 10,604
Amortization 5,223 4,848
-----------------
Adjusted EBITDA $74,837 $71,242
=================
Exhibit 6
Three
Months
Ended
December 31,
Components of Net Sales Growth 2003
-----------
(unaudited)
Internal growth 3.9%
Acquisitions and base period adjustments 1.5%
Foreign exchange 2.7%
-----------
Total sales growth 8.1%
===========
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