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For more information:
Jeffrey P. Cornwell
James N. Borum
(610) 687-5253
AIRGAS, INC. REPORTS RECORD EARNINGS AND CASH FLOW
IN SECOND QUARTER
RADNOR, Pennsylvania, October 24, 1996
Airgas, Inc. (NYSE-ARG) reported today record quarterly earnings and cash
flow. Net earnings increased 21% to $11,310,000 or $.17 per share during the
second quarter ended September 30, 1996, from $9,335,000 or $.14 per share in
the second quarter last year. After tax cash flow (net earnings plus
depreciation, amortization and deferred income taxes) increased 22% to
$28,726,000 or $.42 per share from $23,625,000 in the second quarter last
year.
The increase in net earnings was primarily due to an increase in gross
profits as a result of same-store distribution sales growth of approximately
3%, and earnings and cash flow generated by the 44 distribution businesses
acquired since July 1, 1995.
Peter McCausland, Chairman and Chief Executive Officer, commented, The
Airgas troops came through again with another solid performance despite all of
the consolidation and integration activity and an industrial economy which is
less than robust. We are making significant progress assimilating the large
number of recent acquisitions. Gas and cylinder rent are showing positive
sales and gross margin trends. We are looking forward to a good second half.
Net sales increased 40% to $278,712,000 during the second quarter ended
September 30, 1996 over the same period in the prior year primarily due to the
acquisition of 44 distribution businesses since July 1, 1995 and the increase
in same-store sales.
SIX MONTHS ENDED SEPTEMBER 30, 1996
Net earnings increased 20% to $22,460,000 or $.33 per share during the
six months ended September 30, 1996, from $18,789,000 or $.29 per share last
year. After tax cash flow increased 22% to a record $56,497,000 or $.84 per
share from $46,326,000 in the prior year.
The increase in net earnings was primarily due to an increase in gross
profits from higher same-store distribution sales, and earnings and cash flow
generated by the distribution businesses acquired since April 1, 1995.
Net sales increased 41% to $552,810,000 during the six months ended
September 30, 1996 over the same period in the prior year primarily due to the
acquisition of 56 distribution businesses since April 1, 1995.
Currently, the Airgas distributor network includes over 550 locations in
38 states, Mexico and Canada.Airgas is the largest distributor of
industrial, medical and specialty gases and related equipment in North America.
<PAGE 5>
Consolidated statements of earnings follow on page 3.
Note: The statements in this press release relating to matters that are not
historical are forward-looking statements that involve important factors that
could cause actual results to differ materially from those anticipated.
Cautionary statements identifying such important factors are described in
reports, including the Form 8-K, dated May 7, 1996, filed by Airgas with the
Securities and Exchange Commission.
<PAGE 6>
AIRGAS, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
(Amounts in thousands, except per share data)
(Unaudited)
Three Months Ended Six Months Ended
September 30, September 30,
1996 1995 1996 1995
Net sales:
Distribution $249,150 $190,456 $497,279 $376,090
Direct Industrial 20,437 - 36,889 -
Manufacturing 9,125 8,574 18,642 17,212
------- ------- ------- -------
Total net sales 278,712 199,030 552,810 393,302
------- ------- ------- -------
Costs and expenses:
Cost of products sold (excluding
depreciation and amortization)
Distribution 123,753 93,424 250,343 184,345
Direct Industrial 15,537 - 28,969 -
Manufacturing 5,847 5,293 12,177 11,029
Selling, distribution and
administrative expenses 89,544 66,997 175,731 132,134
Depreciation and amortization 15,023 11,172 29,261 21,613
------- ------- ------- -------
Total costs and expense 249,704 176,886 496,481 349,121
------- ------- ------- -------
Operating income:
Distribution 26,578 20,260 51,522 40,739
Direct Industrial 638 - 1,182 -
Manufacturing 1,792 1,884 3,625 3,442
------ ------ ------ ------
Total operating income 29,008 22,144 56,329 44,181
Interest expense, net (9,753) (5,867) (18,034) (11,455)
Other income, net 70 155 351 366
Equity in earnings of unconsolidated
affiliate 114 - 114 -
Minority interest (152) (174) (381) (365)
------ ------ ------ ------
Earnings before income taxes 19,287 16,258 38,379 32,727
Income taxes 7,977 6,923 15,919 13,938
------- ------- ------- -------
Net earnings $11,310 $ 9,335 $22,460 $18,789
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Earnings per share $ .17 $ .14 $ .33 $ .29
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Weighted average shares 67,660 65,352 67,350 65,212
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