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Airgas Reports Record Fourth Quarter EPS of $0.76 |
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Airgas Reports Record Fourth Quarter EPS of $0.76
RADNOR, PA – May 5, 2008 -- Airgas, Inc. (NYSE: ARG), the largest U.S. distributor of industrial, medical, and specialty gases, welding, safety, and related products, today reported strong growth in sales, operating income, and earnings for its fourth quarter ended March 31, 2008.
Quarterly net earnings grew 47% to $64.2 million, or $0.76 per diluted share, compared to $43.7 million, or $0.54 per diluted share, in the prior year. Fourth quarter sales grew 27% from the prior year to $1.1 billion, with acquisitions contributing 19% of the growth. Total same-store sales increased 8% in the quarter, with hardgoods up 4% and gas and rent up 11%.
“Despite a slowing economy, our strategic product categories, which focus on the healthcare, research, environmental, and food and beverage markets, posted 11% organic growth in the quarter,” said Airgas Chairman and Chief Executive Officer Peter McCausland. “Our energy and infrastructure construction customers remain strong. Rising export activity and strength in U.S. infrastructure projects are also helping many of our core industrial customers, offsetting the economic slowdown. We continue to grow profitably, as the operating margin in the quarter expanded to 12.1%, an improvement of 120 basis points over last year.”
The Company made 18 acquisitions in fiscal 2008, adding more than $500 million in annualized revenue. In addition to the June 30, 2007 acquisition of Linde’s U.S. packaged gas business, which added $346 million in annualized revenue from 130 locations across 18 states, there were 17 others that added more than $160 million. “These transactions helped us enhance our core business and extend our product lines, with acquisitions in packaged gases and welding products, safety products, ammonia, and refrigerants,” said McCausland. “We have taken time to integrate them in a manner that effectively creates long-term value for our customers and our shareholders.”
Sales in fiscal 2008 increased 25% to $4 billion, with same-store sales growth of 7%. Earnings for the year were $2.66 per diluted share compared to $1.92 per diluted share in the prior year. The current year includes a $0.03 one-time non-cash charge from the National Welders transaction and a $0.01 one-time tax benefit related to a change in state tax law. The prior year included a charge of $0.10 for the early extinguishment of debt and a $0.02 tax benefit related to a change in state tax law. Adjusting for these items, diluted earnings per share increased 34% to $2.68 in fiscal 2008.* The Company generated strong free cash flow of $225 million for the year, compared to $107 million last year.*
McCausland continued, “We expect earnings per diluted share of $3.24 to $3.40 in fiscal 2009. First-quarter expectations are $0.79 to $0.81 per diluted share. We are mindful of the state of the U.S. economy, but we believe Airgas is well-positioned to deliver strong earnings growth this year.”
The Company will conduct an earnings teleconference at 11:00 a.m. Eastern Time on Tuesday, May 6. The teleconference will be available by calling (888) 726-2429. The presentation materials (this press release, slides to be presented during the Company’s teleconference, and information about how to access a live and on-demand webcast of the teleconference) are available in the “Investor Information” section under the “Company Information” heading on the Company’s Internet site at www.airgas.com. A webcast of the teleconference will be available live and on demand through June 6 at http://www.shareholder.com/arg/medialist.cfm. A replay of the teleconference will be available through May 13. To listen, call (888) 203-1112 and enter passcode 8415413.
* See attached reconciliations of non-GAAP financial measures associated with Adjusted Net Earnings and Free Cash Flow calculations.
About Airgas, Inc.
Airgas, Inc. (NYSE: ARG), through its subsidiaries, is the largest U.S. distributor of industrial, medical, and specialty gases, and hardgoods, such as welding equipment and supplies. Airgas is also one of the largest U.S. distributors of safety products, the largest U.S. producer of nitrous oxide and dry ice, the largest liquid carbon dioxide producer in the Southeast, and a leading distributor of process chemicals, refrigerants, and ammonia products. More than 14,000 employees work in over 1,100 locations, including branches, retail stores, gas fill plants, specialty gas labs, production facilities and distribution centers. Airgas also distributes its products and services through eBusiness, catalog and telesales channels. Its national scale and strong local presence offer a competitive edge to its diversified customer base. For more information, please visit www.airgas.com.
Forward-Looking Statements
This press release may contain statements that are forward looking, as that term is defined by the Private Securities Litigation Reform Act 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: energy and infrastructure construction customers remaining strong; customers in medical, research, environmental, and food and beverage segments remaining strong; industrial customers benefiting from rising export activity and U.S. infrastructure projects; expectations for fiscal 2009 earnings per diluted share of $3.24 to $3.40 and first quarter earnings per diluted share of $0.79 to $0.81; and the belief that Airgas is well-positioned to deliver strong earnings growth in fiscal 2009. We intend that such forward-looking statements be subject to the safe harbors created thereby. All forward-looking statements are based on current expectations regarding important risk factors and should not be regarded as a representation by us 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: an economic downturn; customer acceptance of price increases; supply cost pressures; increased industry competition; our ability to successfully consummate and integrate acquisitions; adverse changes in customer buying patterns; significant fluctuations in interest rates; increases in energy costs and other operating expenses; the effect of catastrophic events; political and economic uncertainties associated with current world events; and other factors described in the Company’s reports, including its Form 10-K dated March 31, 2007, subsequent Forms 10-Q, and other forms filed by the Company with the Securities and Exchange Commission.
Consolidated statements of earnings, condensed consolidated balance sheets, consolidated statements of cash flows, and reconciliations of non-GAAP financial measures follow.
Please click here for the complete release including financials
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For more information on Airgas, please visit .
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