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Airgas Reports Record First Quarter EPS of $0.81 |
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Airgas Reports Record First Quarter EPS of $0.81
RADNOR, PA – July 23, 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 record earnings for its first quarter ended June 30, 2008.
Quarterly net earnings grew 33% to $68.9 million, or $0.81 per diluted share, compared to $51.7 million, or $0.63 per diluted share, in the prior year. First quarter sales increased 22% from the prior year to $1.1 billion. Acquisitions contributed 15% to the increase, and total same-store sales grew 7% in the quarter, with hardgoods up 6% and gas and rent up 7%.
“Our strategic product categories, which are focused on healthcare, life sciences, research, environmental, and food and beverage markets, comprising about 40% of our sales, posted 10% organic growth in the quarter,” said Airgas Chairman and Chief Executive Officer Peter McCausland. “The strong outlook for energy and infrastructure construction continues, and export activity is still supporting U.S. manufacturers in the face of slowing domestic demand. Acquisition activity is also contributing to our growth, and we have announced more than $130 million of acquired annual revenue since our fiscal year began in April.”
Free cash flow* in the quarter was $58 million, compared to $28 million in the prior year. McCausland said, “We continue to generate strong free cash flow, which fuels our strategic growth initiatives.”
“Costs escalated in the quarter faster than we planned, but we remain committed to staying ahead of the cost curve and our recently announced pricing action should accomplish that,” McCausland continued. “We expect earnings per diluted share of $0.82 to $0.84 in the second quarter, and are updating our full-year expectations to $3.30 to $3.40 per diluted share in fiscal 2009.” The previously announced range was $3.24 to $3.40.
The Company will conduct an earnings teleconference at 11:00 a.m. Eastern Time on Thursday, July 24. The teleconference will be available by calling (888) 277-7135. 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 August 25 at http://investor.shareholder.com/arg/events.cfm. A replay of the teleconference will be available through July 31. To listen, call (888) 203-1112 and enter passcode 4559826.
* See attached reconciliation and calculation of the non-GAAP free cash flow financial measure.
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: the strong outlook for energy and infrastructure construction; export activity for U.S. manufacturers; our commitment to manage cost increases; and expectations for fiscal 2009 earnings per diluted share of $3.30 to $3.40 and second quarter earnings per diluted share of $0.82 to $0.84. 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 identify, 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, 2008, 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 a reconciliation of the non-GAAP free cash flow financial measure 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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