Apogent Reports Third Quarter and Year-to-Date Results.Business Editors/Health/Medical Writers BIOWIRE2K 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)--July 22, 2003 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 third quarter and year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. ended June June: see month. 30, 2003. 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 third quarter were $0.36. Income and diluted earnings per share from continuing operations for the third quarter were $35.7 million and $0.36, respectively. These results compare with income and diluted earnings per share from continuing operations for the third quarter of fiscal 2002 of $33.9 million and $0.31, respectively. Excluding 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). , income and diluted earnings per share from continuing operations for the third quarter were $36.6 million and $0.36, respectively. For the third quarter of fiscal 2002, income and diluted earnings per share from continuing operations, excluding restructuring, were $34.9 million and $0.32, respectively. 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 third quarter were $278.5 million compared with $267.2 million in the same period last year, an increase of 4.2%. Net sales year-to-date were $812.9 million compared to $756.3 million for the prior year, an increase of 7.5%. Commenting on the financial results of the Company, Frank H. Jellinek Jellinek is a surname and may refer to:
During the quarter, the Company repurchased 8,499,522 shares of its common stock, including 6,022,952 shares purchased as part of the previously announced modified mod·i·fy v. mod·i·fied, mod·i·fy·ing, mod·i·fies v.tr. 1. To change in form or character; alter. 2. "Dutch Auction Dutch Auction An auction where the price on an item is lowered until it gets its first bid, and then the item is sold at that price. Notes: The U.S. Treasury (and other countries) uses a Dutch auction when it sells securities. " tender offer. With regard to the Company's continuing share buyback Buyback The buying back of outstanding shares (repurchase) by a company in order to reduce the number of shares on the market. Companies will buyback shares either to increase the value of shares still available (reducing supply), or to eliminate any threats by shareholders who may program, Mr. Jellinek commented: "We were pleased with the results of the tender offer, and we intend to continue with our plan to reduce our share count 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, as announced at the end of last quarter." THIRD QUARTER AND YEAR-TO-DATE FINANCIAL RESULTS Quarterly and year-to-date comparisons of net sales by business segment are as follows:
NET SALES
Three Months Ended
June 30,
(in thousands)
Internal
Business Segment 2003 2002 Growth(1) Growth
----------------------------------------------------------------------
Clinical Group $127,818 $122,754 4.1% 1.7%
Research Group 150,660 144,438 4.3% 0.5%
----------------------------------------------------------------------
Total $278,478 $267,192 4.2% 1.0%
======================================================================
Nine Months Ended
June 30,
(in thousands)
Internal
Business Segment 2003 2002 Growth(1) Growth
----------------------------------------------------------------------
Clinical Group $379,747 $351,137 8.1% 2.5%
Research Group 433,167 405,117 6.9% 2.0%
----------------------------------------------------------------------
Total $812,914 $756,254 7.5% 2.3%
======================================================================
(1) Please refer to Exhibit 7 for a breakdown of net sales growth for
the three and nine month periods ended June 30, 2003.
Apogent's net sales for the quarter and year-to-date periods by
geographic area were as follows:
Three Months Ended
June 30,
(in thousands)
Geographic Area 2003 2002
-----------------------------------------------------
North America $203,205 $198,494
Europe 51,416 44,704
Asia 17,327 16,166
Other 6,530 7,828
-----------------------------------------------------
Total $278,478 $267,192
=====================================================
Nine Months Ended
June 30,
(in thousands)
Geographic Area 2003 2002
-----------------------------------------------------
North America $592,171 $556,263
Europe 152,486 132,075
Asia 49,413 44,722
Other 18,844 23,194
-----------------------------------------------------
Total $812,914 $756,254
=====================================================
DETAILED FINANCIAL RESULTS Please refer to the financial statements at the end of this press release when reviewing the following financial information. Gross profit for the third quarter of fiscal 2003 was $133.7 million, an increase of 2.5% from $130.4 million for the same period last year. Gross margin fell from 48.8% in the third quarter of last year to 48.0% in the third quarter of this year. Year-to-date gross margin was 47.9%, or $389.8 million, versus 48.8% or $369.4 million last year. Selling, general and administrative expenses for the quarter were $70.4 million, an increase of 5.6% from $66.7 million for the same period last year. Selling, general and administrative expenses were $210.7 million for the first nine months of the fiscal year versus $190.2 million for the same period last year. 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 third quarter of 2003 was $63.3 million, a decrease of 0.8%, from $63.8 million for the same period last year. Operating income year-to-date was $179.1 million compared to $179.2 million for the same period last year. 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 certain investors use Adjusted EBITDA as one 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 GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (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., income excluding restructuring) have been provided in order to provide consistency Consistency can refer to:
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 were $174.9 million and inventory was $213.4 million at the end of the third quarter. Outstanding days of sales in the third quarter were 55.3 days compared with 56.9 days for the same period last year, restated for the discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. . Inventory turns for the quarter were 2.6, compared with 2.6 for the last quarter, and 2.6 for the third quarter of last year. RESTRUCTURING Restructuring expenses during the three and nine months ended June 30, 2003 were $1.4 million and $1.8 million, respectively. These charges were primarily related to severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when and other 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. INCOME TAXES During the quarter, the Company revised its estimated effective annual tax rate for fiscal 2003 down from 36.5% to 36% due to the expected utilization utilization, n 1. the extent to which a given group uses a particular service in a specified period. Although usually expressed as the number of services used per year per 100 or per 1000 persons eligible for the service, utilization rates may be of additional foreign tax credits. The effective tax rate for the three months ended June 30, 2003 of 29.7% was favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. impacted by the utilization of additional foreign tax credits on the Company's prior year tax returns filed this quarter and the cumulative effect of the fiscal 2003 rate change. The Company anticipates that its estimated effective annual tax rate for the fiscal year 2004 will be 36%. 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. Pursuant to our previously announced modified "Dutch Auction" tender offer, Apogent repurchased approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 6.0 million shares during the third quarter at a price of $17.50. In addition, the Company repurchased approximately 2.5 million additional shares at an average price of $20.49 per share. As of the end of the third quarter, the number of shares outstanding was approximately 93.7 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 13.4 million shares over the course of the period ending September September: see month. 30, 2005. BOND OFFERING As previously announced, Apogent sold $250 million of 6 1/2% senior subordinated Subordinated A claim ranked lower in priority than other claims. Common stock claims are always subordinated to debt. notes due 2013 in a private placement that closed on June 2, 2003. Apogent and its guarantor guarantor n. a person or entity that agrees to be responsible for another's debt or performance under a contract, if the other fails to pay or perform. (See: guarantee) GUARANTOR, contracts. He who makes a guaranty. 2. subsidiaries recently filed an exchange offer registration statement with respect to these notes, as promised in connection with their issuance. ACQUISITION On July July: see month. 1, 2003, Apogent purchased the PathoDx line of products from Diagnostic Products Corporation. The PathoDx line consists of manual latex latex, emulsion of a polymer (e.g., rubber) in water (see colloid). Natural latexes are produced by a number of plants, are usually white in color, and often contain, in addition to rubber, various gums, oils, and waxes. agglutination agglutination, in biochemistry agglutination, in biochemistry: see immunity. agglutination, in linguistics agglutination, in linguistics: see inflection. and immunoflorescent microscopy microscopy /mi·cros·co·py/ (mi-kros´kah-pe) examination under or observation by means of the microscope. mi·cros·co·py n. 1. The study of microscopes. 2. diagnostic tests. Net sales from this product line for the first full year are expected to be approximately $2.5 million. OUTLOOK FOR THE BALANCE OF THE YEAR AND FISCAL 2004 The Company is maintaining its guidance for the full fiscal year of 2003 to a range of $1.26 to $1.30 diluted earnings per share from continuing operations, before restructuring ($1.21 to $1.26 diluted earnings per share after 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. of approximately $7 million, or $0.04 to $0.05 per share). Although the Company has not commenced its detailed budgeting process for fiscal year 2004, the Company's preliminary estimate of diluted earnings per share for fiscal 2004 falls within a range of $1.50 to $1.65. This range assumes that the Company repurchases an additional 6.5 million shares. CONFERENCE CALL On Wednesday Wednesday: see week. , July 23, 2003, at 11:00 a.m. EST EST electroshock therapy. EST abbr. electroshock therapy , Apogent will host a conference call to discuss its second quarter financial results for the period ended June 30, 2003. The dial-in numbers for the teleconference are: Domestic Callers (877) 679-9049 International Callers (952) 556-2803 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 August 23, 2003. A telephone replay of the call will also 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 Thursday Thursday: see week. , July 24, 2003. The telephone replay numbers are (800) 615-3210 (Domestic Callers) or (703) 326-3020. (International Callers), passcode 6400826. UPCOMING COMPANY TRADE SHOW EXHIBITS
Show Details
----------------------------------------------------------------------
American Association of Clinical Chemistry July 20 - 24, 2003
Philadelphia, PA
www.aacc.org
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ABOUT APOGENT Apogent is a diversified diversified (di·verˑ·s worldwide leader in the design, manufacture, and sale of value-added val·ue-add·ed adj. Of or relating to the estimated value that is added to a product or material at each stage of its manufacture or distribution: 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: Clinical Group and 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, earnings, 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: 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; transitional 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; the success or failure of the proposed issuer tender offer and related transactions; 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.
APOGENT TECHNOLOGIES INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands except share and per share data)
(unaudited)
June 30, September 30,
2003 2002
------------- -------------
Assets
Current assets:
Cash and cash equivalents $86,150 $16,327
Accounts receivable (less allowance for
doubtful accounts of $4,008 and
$5,723 respectively) 174,945 186,950
Inventories 213,367 203,997
Deferred income taxes 14,127 14,127
Prepaid expenses and other current assets 18,957 19,689
Assets of discontinued operations -
avail. for sale 52,879 5,436
------------- -------------
Total current assets 560,425 446,526
Available for sale security 62,727 60,183
Property, plant and equipment, net 274,958 270,893
Intangible assets 1,173,866 1,243,113
Other assets 19,414 15,370
------------- -------------
Total assets $2,091,390 $2,036,085
============= =============
Liabilities and Shareholders' Equity
Current liabilities:
Short-term debt and overdrafts $14,006 $10,640
Accounts payable 45,512 53,779
Current portion of long-term debt 2,204 25,352
Income taxes payable 46,975 53,064
Accrued payroll and employee benefits 31,056 32,009
Accrued interest expense 9,341 16,630
Restructuring reserve 1,250 1,548
Other current liabilities 29,367 23,074
Liabilities of discontinued
operations 5,545 305
------------- -------------
Total current liabilities 185,256 216,401
Long-term debt 884,717 635,020
Securities lending agreement 62,727 60,183
Deferred income taxes 144,090 132,100
Other liabilities 17,522 17,243
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 107,019,535
and 106,976,877 shares respectively;
outstanding 93,698,339 and 105,967,853
shares respectively 1,070 1,070
Equity rights, 50 rights at $1.09 per
right - -
Additional paid-in capital 270,591 271,682
Retained earnings 758,095 748,791
Accumulated other comprehensive income
(loss) 8,100 (26,419)
Treasury common stock 13,321,196 and
1,009,024 shares at cost (240,778) (19,986)
------------- -------------
Total shareholders' equity 797,078 975,138
------------- -------------
Total liabilities and shareholders'
equity $2,091,390 $2,036,085
============= =============
APOGENT TECHNOLOGIES INC. AND SUBSIDIARIES
Consolidated Statements of Income
(In thousands, except per share data)
(unaudited)
Three Months Ended Nine Months Ended
June 30, June 30,
2003 2002 2003 2002
--------- --------- --------- ---------
Net sales $278,478 $267,192 $812,914 $756,254
Cost of sales 143,839 135,304 422,205 381,750
Restructuring charge 955 1,440 955 5,113
--------- --------- --------- ---------
Total cost of sales 144,794 136,744 423,160 386,863
--------- --------- --------- ---------
Gross profit 133,684 130,448 389,754 369,391
Selling, general and
administrative expenses 69,923 66,655 209,863 188,577
Restructuring charge 475 - 807 1,614
--------- --------- --------- ---------
Total selling, general and
administrative expenses 70,398 66,655 210,670 190,191
--------- --------- --------- ---------
Operating income 63,286 63,793 179,084 179,200
Other income (expense):
Interest expense (11,635) (10,273) (32,427) (30,851)
Amortization of deferred
financing fees (1,006) (938) (2,809) (2,680)
Other, net 163 963 943 3,272
--------- --------- --------- ---------
Income from continuing
operations before income
taxes 50,808 53,545 144,791 148,941
Income taxes 15,104 19,597 49,408 54,512
--------- --------- --------- ---------
Income from continuing
operations 35,704 33,948 95,383 94,429
Discontinued operations, net
of income tax benefit 1,249 2,125 (86,079) (9,437)
--------- --------- --------- ---------
Net income $36,953 $36,073 $9,304 $84,992
========= ========= ========= =========
Basic earnings per common
share from continuing
operations $0.36 $0.32 $0.93 $0.89
Discontinued operations 0.01 0.02 (0.84) (0.09)
--------- --------- --------- ---------
Basic earnings per common
share $0.37 $0.34 $0.09 $0.80
========= ========= ========= =========
Diluted earnings per common
share from continuing
operations $0.36 $0.31 $0.92 $0.87
Discontinued operations $0.01 0.02 (0.83) (0.09)
--------- --------- --------- ---------
Diluted earnings per common
share $0.37 $0.33 $0.09 $0.78
========= ========= ========= =========
Weighted average basic shares
outstanding 99,486 106,816 103,053 106,452
Weighted average diluted
shares outstanding 100,526 109,010 104,056 108,996
APOGENT TECHNOLOGIES INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Nine Months Ended
June 30,
2003 2002
---------- ----------
Cash flows from operating activities:
Net income $9,304 $84,992
Adjustments to reconcile net income to net cash
provided by operating activities
Discontinued operations 86,079 9,437
Depreciation 31,819 27,499
Amortization 14,377 12,272
Gain on sale of property, plant and equipment 244 100
Provision for losses on doubtful accounts (808) (496)
Inventory provisions 982 (2,919)
Deferred income taxes 10,252 3,416
Changes in assets and liabilities, net of
effects of businesses acquired: -
Decrease in accounts receivable 3,312 1,107
Increase in inventories (12,092) (17,817)
Increase in prepaid expenses and other
current assets (3,376) (4,734)
Decrease in accounts payable (6,956) (7,409)
Increase (decrease) in income taxes
payable (6,604) 14,964
Decrease in accrued payroll and employee
benefits (1,372) (957)
Decrease in accrued interest expense (7,290) (6,861)
Increase (decrease) in restructuring
reserve (298) 3,188
Increase (decrease) in other current
liabilities 2,842 (6,045)
Net change in other assets and liabilities (4,970) 9,051
---------- ----------
Net cash provided by operating
activities 115,445 118,788
---------- ----------
Cash flows from investing activities:
Capital expenditures (37,684) (31,356)
Proceeds from sales of property, plant and
equipment 1,221 1,119
Net payments for businesses acquired (21,654) (142,117)
Other investing activities 1,546 -
---------- ----------
Net cash used in investing activities (56,571) (172,354)
---------- ----------
Cash flows from financing activities:
Proceeds from revolving credit facility 469,400 285,200
Principal payments on revolving credit facility (469,400) (465,300)
Proceeds from long-term debt 250,000 300,000
Principal payments on long-term debt (23,408) (45,372)
Proceeds from the exercise of stock options 2,543 8,407
Proceeds from stock purchase program 927 -
Purchase of treasury stock (226,348) -
Financing fees paid (9,168) (8,081)
Other financing activities 2,510 (374)
---------- ----------
Net cash provided by (used in) financing
activities (2,944) 74,480
---------- ----------
Effect of exchange rate changes on cash and cash
equivalents 13,893 4,503
---------- ----------
Net increase in cash and cash equivalents 69,823 25,417
Cash and cash equivalents at beginning of period 16,327 9,192
---------- ----------
Cash and cash equivalents at end of period $86,150 $34,609
========== ==========
APOGENT TECHNOLOGIES INC. AND SUBSIDIARIES
Adjusted Consolidated Statements of Income
(In thousands, except per share data)
(unaudited)
Three months ended June 30, 2003
--------------------------------------
US GAAP Adjustments Adjusted
Results (D) Results (A)
--------------------------------------
Net sales $278,478 $- $278,478
Cost of sales 143,839 - 143,839
Restructuring charge 955 (955) -
------------ ------------ ------------
Total cost of sales 144,794 (955) 143,839
------------ ------------ ------------
Gross profit 133,684 955 134,639
Selling, general and
administrative expenses 69,923 - 69,923
Restructuring charge 475 (475) -
------------ ------------ ------------
Total selling, general and
administrative expenses 70,398 (475) 69,923
------------ ------------ ------------
Operating income 63,286 1,430 64,716
Other income (expense):
Interest expense (11,635) - (11,635)
Amortization of deferred
financing fees (1,006) - (1,006)
Other, net 163 - 163
------------ ------------ ------------
Income from continuing
operations before income taxes 50,808 1,430 52,238
Income taxes 15,104 515 15,619
------------ ------------ ------------
Income from continuing
operations 35,704 915 36,619
Discontinued operations, net of
income tax benefit 1,249 - 1,249
------------ ------------ ------------
Net income $36,953 $915 $37,868
============ ============ ============
Basic earnings per common share
from continuing operations $0.36 $0.37
Discontinued operations 0.01 0.01
------------ ------------
Basic earnings per common share $0.37 $0.38
============ ============
Diluted earnings per common
share from continuing
operations $0.36 $0.36
Discontinued operations $0.01 $0.01
------------ ------------
Diluted earnings per common
share $0.37 $0.38
============ ============
Weighted average basic shares
outstanding 99,486 99,486
Weighted average diluted shares
outstanding 100,526 100,526
Three months ended June 30, 2002
-----------------------------------------------------
As Previously Discontinued Adjustments Adjusted
Reported US Operations (D) Results (A)
GAAP Results (C)
(B)
-----------------------------------------------------
Net sales $280,700 $(13,508) $- $267,192
Cost of sales 141,783 (6,479) - 135,304
Restructuring
charge 1,440 - (1,440) -
-----------------------------------------------------
Total cost of
sales 143,223 (6,479) (1,440) 135,304
-----------------------------------------------------
Gross profit 137,477 (7,029) 1,440 131,888
Selling, general
and administrative
expenses 70,189 (3,534) - 66,655
Restructuring
charge - - - -
-----------------------------------------------------
Total selling,
general and
administrative
expenses 70,189 (3,534) - 66,655
-----------------------------------------------------
Operating income 67,288 (3,495) 1,440 65,233
Other income
(expense):
Interest expense (10,273) - - (10,273)
Amortization of
deferred
financing fees (938) - - (938)
Other, net 943 20 - 963
-----------------------------------------------------
Income from
continuing
operations
before income
taxes 57,020 (3,475) 1,440 54,985
Income taxes 20,846 (1,249) 526 20,123
-----------------------------------------------------
Income from
continuing
operations 36,174 (2,226) 914 34,862
Discontinued
operations, net
of income tax
benefit (101) 2,226 - 2,125
-----------------------------------------------------
Net income $36,073 $- $914 $36,987
=====================================================
Basic earnings
per common share
from continuing
operations $0.34 $0.33
Discontinued
operations (0.00) 0.02
-------------- -------------
Basic earnings
per common share $0.34 $0.35
============== =============
Diluted earnings
per common share
from continuing
operations $0.33 $0.32
Discontinued
operations $(0.00) $0.02
-------------- -------------
Diluted earnings
per common share $0.33 $0.34
============== =============
Weighted average
basic shares
outstanding 106,816 106,816
Weighted average
diluted shares
outstanding 109,010 109,010
(A) These Adjusted Consolidated Statements of Income are for
informational purposes only and are not in accordance with US
generally accepted accounting principles (GAAP). These statements
exclude the impact of the restructuring charges.
(B) Amounts previously reported. Includes the results of Vacuum
Process Technology, Inc. (VPT) which was discontinued during
FY2002.
(C) Reflects the impact of the discontinuance of Applied Biotech, Inc.
(ABI) and BioRobotics Group Limited (BioRobtics) on historical
financial results.
(D) Reflects the impact of restructuring charges.
APOGENT TECHNOLOGIES INC. AND SUBSIDIARIES
Adjusted Consolidated Statements of Income
(In thousands, except per share data)
(unaudited)
Nine months ended June 30, 2003
--------------------------------------
US GAAP Adjustments Adjusted
Results (D) Results (A)
--------------------------------------
Net sales $812,914 $- $812,914
Cost of sales 422,205 - 422,205
Restructuring charge 955 (955) -
------------ ------------ ------------
Total cost of sales 423,160 (955) 422,205
------------ ------------ ------------
Gross profit 389,754 955 390,709
Selling, general and
administrative expenses 209,863 - 209,863
Restructuring charge 807 (807) -
------------ ------------ ------------
Total selling, general and
administrative expenses 210,670 (807) 209,863
------------ ------------ ------------
Operating income 179,084 1,762 180,846
Other income (expense):
Interest expense (32,427) - (32,427)
Amortization of deferred
financing fees (2,809) - (2,809)
Other, net 943 - 943
------------ ------------ ------------
Income from continuing
operations before income taxes 144,791 1,762 146,553
Income taxes 49,408 634 50,042
------------ ------------ ------------
Income from continuing
operations 95,383 1,128 96,511
Discontinued operations, net of
income tax benefit (86,079) - (86,079)
------------ ------------ ------------
Net income $9,304 $1,128 $10,432
============ ============ ============
Basic earnings per common share
from continuing operations $0.93 $0.94
Discontinued operations (0.84) (0.84)
------------ ------------
Basic earnings per common share $0.09 $0.10
============ ============
Diluted earnings per common
share from continuing
operations $0.92 $0.93
Discontinued operations $(0.83) $(0.83)
------------ ------------
Diluted earnings per common
share $0.09 $0.10
============ ============
Weighted average basic shares
outstanding 103,053 103,053
Weighted average diluted shares
outstanding 104,056 104,056
Nine months ended June 30, 2002
----------------------------------------------------
As Previously Discontinued Adjustments Adjusted
Reported US Operations (D) Results (A)
GAAP Results (C)
(B)
----------------------------------------------------
Net sales $790,129 $(33,875) $- $756,254
Cost of sales 398,871 (17,121) - 381,750
Restructuring
charge 5,113 - (5,113) -
----------------------------------------------------
Total cost of
sales 403,984 (17,121) (5,113) 381,750
----------------------------------------------------
Gross profit 386,145 (16,754) 5,113 374,504
Selling, general
and administrative
expenses 198,319 (9,742) - 188,577
Restructuring
charge 1,614 - (1,614) -
----------------------------------------------------
Total selling,
general and
administrative
expenses 199,933 (9,742) (1,614) 188,577
----------------------------------------------------
Operating income 186,212 (7,012) 6,727 185,927
Other income
(expense):
Interest expens (30,804) (47) - (30,851)
Amortization of
deferred
financing fees (2,680) - - (2,680)
Other, net 3,217 55 - 3,272
----------------------------------------------------
Income from
continuing
operations before
income taxes 155,945 (7,004) 6,727 155,668
Income taxes 57,076 (2,564) 2,455 56,967
----------------------------------------------------
Income from
continuing
operations 98,869 (4,440) 4,272 98,701
Discontinued
operations, net
of income tax
benefit (13,877) 4,440 - (9,437)
----------------------------------------------------
Net income $84,992 $- $4,272 $89,264
====================================================
Basic earnings per
common share from
continuing
operations $0.93 $0.93
Discontinued
operations (0.13) (0.09)
------------- -------------
Basic earnings per
common share $0.80 $0.84
============= =============
Diluted earnings
per common share
from continuing
operations $0.91 $0.91
Discontinued
operations $(0.13) $(0.09)
------------- -------------
Diluted earnings
per common share $0.78 $0.82
============= =============
Weighted average
basic shares
outstanding 106,452 106,452
Weighted average
diluted shares
outstanding 108,996 108,996
(A) These Adjusted Consolidated Statements of Income are for
informational purposes only and are not in accordance with US
generally accepted accounting principles (GAAP). These statements
exclude the impact of the restructuring charges.
(B) Amounts previously reported. Includes the results of Vacuum
Process Technology, Inc. (VPT) which was discontinued during
FY2002.
(C) Reflects the impact of the discontinuance of Applied Biotech, Inc.
(ABI) and BioRobotics Group Limited (BioRobtics) on historical
financial results.
(D) Reflects the impact of restructuring charges.
Calculation of Adjusted EBITDA
(historical amounts have been restated
to reflect discontinued operations)
Three Months Ended Nine Months Ended
June 30, June 30,
2003 2002 2003 2002
----------- --------- --------- ---------
(unaudited)
Net income $36,953 $36,073 $9,304 $84,992
Less: Discontinued
operations 1,249 2,125 (86,079) (9,437)
Income Taxes 15,104 19,597 49,408 54,512
-----------------------------------------
Income from continuing
operations before income
taxes 50,808 53,545 144,791 148,941
Interest expense 11,635 10,273 32,427 30,851
Depreciation 10,443 9,027 31,819 27,499
Amortization 4,818 5,173 14,377 12,272
-----------------------------------------
Adjusted EBITDA $77,704 $78,018 $223,414 $219,563
=========================================
Three Nine
Months Months
Ended Ended
June 30,
(unaudited)
Components of Net Sales Growth 2003 2003
------------ -----------
Internal growth 1.0% 2.3%
Acquisitions 0.5% 2.8%
Foreign exchange 2.7% 2.4%
------------ -----------
Total sales growth 4.2% 7.5%
============ ===========
The above figures represent the percentage growth in net sales as
compared to the same period in fiscal 2002.
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