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Exhibit 99
For More Information:
Chris Close
(610) 902-6257
chris.close@airgas.com
AIRGAS REPORTS RECORD AFTER-TAX CASH FLOW PER SHARE
IN FISCAL 2001 FIRST QUARTER
o After-tax cash flow of $.54 per share; up 8%
o Net earnings of $.15 per share; up 7%
o Same-store sales up 3%
RADNOR, Pennsylvania, July 27, 2000 - Airgas, Inc. (NYSE - ARG)
today reported after-tax cash flow (net earnings, plus depreciation,
amortization and deferred income taxes) for the quarter ended June
30, 2000 of $36.0 million, or a record $.54 per diluted share,
compared to $35.2 million, or $.50 per diluted share, for the
quarter ended June 30, 1999. Net earnings for the quarter were $9.8
million, or $.15 per diluted share, versus $9.7 million, or $.14 per
diluted share, for the same quarter last year. Sales increased 8%
to $409 million from $379 million last year.
"We are pleased that the positive same-store sales trend
continued to build momentum this quarter," stated Peter McCausland,
chairman and chief executive officer. "This is a clear sign that
our strategic sales initiatives are generating results and that many
of our customer segments, which have been impacted by low commodity
prices and the soft U.S. industrial economy, are improving. While
various cost pressures are still affecting our business, higher
gross profits are fueling earnings and after-tax cash flow growth.
"Taking a longer-term perspective, we remain confident in and
committed to our current strategic direction," added Mr. McCausland.
"While there have been bumps in the road, we have traveled a
tremendous distance over the past several years. Our journey has
left us with a distribution infrastructure, national account
capabilities and a broad product and service offering that we
believe are second to none in our industry. In addition, we
continue to expand our eCommerce capabilities and we think that we
are uniquely positioned to be the fulfillment arm for various
integrators on the Internet. Our associates have done a terrific job
during a difficult period of transition and soft end markets, and I
want to personally thank all of them for their hard work and
dedication. We are poised to grow earnings and cash flow in the
future and are confident that the equity market will one day again
value this company based on its strong cash-flow fundamentals."
Total same-store sales increased by 2.9% in the fiscal first
quarter versus the same period a year ago. Same-store sales in the
Distribution segment were up 2.8%, reflecting increases of 3.3% for
gases and rent and 2.5% for hardgoods. Same-store sales for the Gas
Operations segment were 4.3% higher.
Capital expenditures were $15 million for the quarter versus
$14 million in last year's quarter.
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The slides to be presented during the Company's earnings
teleconference, along with the teleconference replay instructions,
are available in the `Investor Info' section on the Company's
Internet site www.airgas.com. The replay will be accessible for one
week starting at approximately 11:00 a.m. Eastern Time on Friday,
July 28, 2000.
Airgas, Inc. is the largest distributor of industrial, medical and
specialty gases and related equipment and one of the largest distributors
of safety supplies in the United States. Airgas' integrated distributor
network consists of approximately 700 locations, including branches,
packaged gas fill plants, distribution centers, and inbound and outbound
telemarketing operations.
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 Company's
expectations regarding customer demand; sales, earnings and cash
flow growth; expansion of eCommerce capabilities; and equity market
valuation. Airgas intends 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 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 soft customer demand; an economic downturn;
increased competition; an inability to continue strengthening the
business and growing earnings and cash flow; and other factors
described in the Company's reports, including Form 10-K dated March
31, 2000, filed by the Company with the Securities and Exchange
Commission.
Consolidated statements of earnings and consolidated condensed
balance sheets follow.
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AIRGAS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(Amounts in thousands, except per share data)
(Unaudited)
Three Months Ended
June 30,
2000 1999
Net sales:
Distribution $374,739 $345,967
Gas Operations 34,259 33,526
Total net sales 408,998 379,493
Costs and expenses:
Cost of products sold (excluding
depreciation and amortization)
Distribution 202,749 188,432
Gas Operations 12,447 12,835
Selling, distribution and
administrative expenses 140,015 126,961
Depreciation and amortization 22,744 22,166
Total costs and expenses 377,955 350,394
Operating income:
Distribution 26,125 26,260
Gas Operations 4,918 2,839
Total operating income 31,043 29,099
Interest expense, net (15,765) (13,783)
Other income, net 52 222
Equity in earnings of unconsolidated
affiliates 1,364 1,000
Earnings before income taxes and
the cumulative effect of an
accounting change 16,694 16,538
Income tax expense 6,878 6,863
Earnings before the cumulative effect
of an accounting change 9,816 9,675
Cumulative effect of an accounting
change, net of taxes (a) - (590)
Net earnings $ 9,816 $ 9,085
Net earnings (excluding accounting change)(b) $ 9,816 $ 9,675
Per share data:
Basic earnings per share $ .15 $ .13
Diluted earnings per share $ .15 $ .13
Per share data
(excluding accounting change)(b):
Basic earnings per share $ .15 $ .14
Diluted earnings per share $ .15 $ .14
Weighted average shares outstanding:
Basic 65,100 69,800
Diluted 67,300 71,100
See notes to consolidated financial statements.
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Notes to consolidated statements of earnings:
(a) Effective April 1, 1999, the Company adopted Statement of Position 98-
5, "Reporting on the Costs of Start-up Activities." The quarter ended June
30, 1999 includes an after-tax charge of $590 thousand for the cumulative
effect of an accounting change related to previously capitalized costs from
start-up activities.
(b) Net earnings and per share amounts, adjusted to exclude the cumulative
effect of an accounting change described in note (a).
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AIRGAS, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(Amounts in thousands)
(Unaudited)
June 30, March 31,
2000 2000
ASSETS
Trade accounts receivable, net $ 217,486 $ 211,989
Inventories, net 167,728 159,438
Deferred income tax asset, net 13,752 13,752
Prepaids and other current assets 24,639 23,611
TOTAL CURRENT ASSETS 423,605 408,790
Property, plant and equipment, net 750,678 753,768
Goodwill, net 442,141 445,498
Other non-current assets, net 127,792 131,275
TOTAL ASSETS $1,744,216 $1,739,331
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable, trade $ 73,013 $ 78,276
Accrued expenses and
other current liabilities 119,803 121,249
Current portion of long-term debt 18,702 20,071
TOTAL CURRENT LIABILITIES 211,518 219,596
Long-term debt 867,304 857,422
Deferred income taxes 164,245 160,808
Other non-current liabilities 27,935 28,998
Stockholders' equity 473,214 472,507
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $1,744,216 $1,739,331