Airgas, Inc. (NYSE: ARG) today will hold its 2014 Analyst
Meeting at 1:30pm ET in Philadelphia and via live webcast. The
Company's management team will discuss their strategies for
leveraging Airgas' unrivaled platform and capabilities to drive
sales growth and margin expansion, as well as discuss their fiscal
2018 financial goals.
“We have a long history of creating value for our shareholders
through a disciplined approach to growing our business and strong,
steady cash flow generation, which continues to be a hallmark of
our business model today. Since going public in 1986, we have
delivered a total annual compounded return to shareholders of 19%,
significantly better than the S&P 500 Index over that 28-year
period,” said Airgas Executive Chairman Peter McCausland. “During
the past several years, we have continued to invest to position
Airgas to capitalize on what we expect will be favorable long-term
trends in key U.S. end markets, including manufacturing, energy,
chemicals, and non-residential construction. With a lot of heavy
lifting behind us and the favorable long-term outlook for the U.S.
industrial economy, Airgas is in a great position to deliver strong
results.”
“With the rollout of Airgas Total Access complete and our robust
new eBusiness platform recently launched, our unrivaled,
multi-channel sales platform is now fully built, and cross-channel
collaboration is increasing rapidly,” said Airgas President and
Chief Executive Officer Michael L. Molinini. “In addition, we’re
creating capacity in our fixed cost structure through
organizational, operational and sales initiatives designed to drive
higher incremental margins on future sales growth.”
“Airgas has a long track record of strong sales and earnings
growth, a solid balance sheet, and a resilient business model,”
said Airgas Senior Vice President and Chief Financial Officer
Robert M. McLaughlin. “Our fiscal 2018 financial goals include,
subject to certain assumptions, sales of approximately $6.8 billion
on compounded annual growth rates of approximately 7% and 1.5% for
organic and acquired sales, respectively, from the trailing twelve
months ended September 30, 2014. Our fiscal 2018 goals also include
increasing our operating margin to at least 15%, representing 270
basis points of expansion, and increasing our return on capital* to
at least 16%, representing 390 basis points of expansion, over that
same three-and-a-half year period.”
In the twelve month period ended September 30, 2014, the Company
generated sales of $5.2 billion, operating margin of 12.3%, and
return on capital* of 12.1%.
In addition to McCausland, Molinini, and McLaughlin, today’s
event features presentations by Andrew R. Cichocki – President,
Airgas USA, LLC; Ronald J. Stark – Senior Vice President, Sales and
Marketing; Charles E. Broadus, Jr. – Division President, South
Division; Thomas S. Thoman – Division President, Gases Production;
Jeffrey D. Cass – Vice President, Manufacturing and Metal
Fabrication Markets; and Stephen R. Hope – Vice President, Energy
and Chemical Markets.
Interested parties may listen to a replay of the webcast until
March 4, 2015 at http://investor.shareholder.com/arg/events.cfm.
The presentation materials, including additional assumptions
associated with the Company’s fiscal 2018 financial goals, are
available at http://investor.shareholder.com/arg/slides.cfm.
* See attached reconciliation and computation of the non-GAAP
return on capital financial measure.
About Airgas, Inc.
Airgas, Inc. (NYSE: ARG), through its subsidiaries, is one of
the nation’s leading suppliers of industrial, medical and specialty
gases, and hardgoods, such as welding equipment and related
products. Airgas is a leading U.S. producer of atmospheric gases
with 16 air separation plants, a leading producer of carbon
dioxide, dry ice, and nitrous oxide, one of the largest U.S.
suppliers of safety products, and a leading U.S. supplier of
refrigerants, ammonia products, and process chemicals. More than
16,000 associates work in approximately 1,100 locations, including
branches, retail stores, gas fill plants, specialty gas labs,
production facilities and distribution centers. Airgas also markets
its products and services through e-Business, 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 contains statements that are forward looking,
as that term is defined by the Private Securities Litigation Reform
Act of 1995 or by the SEC in its rules, regulations and releases.
These statements include, but are not limited to: the favorable
long-term outlook for the U.S. economy; Airgas’ ability to deliver
strong results and higher incremental margins on future sales
growth; and Airgas’ ability to achieve its fiscal 2018 financial
goals. Forward-looking statements also include any statement that
is not based on historical fact, including statements containing
the words “believes,” “may,” “plans,” “will,” “could,” “should,”
“estimates,” “continues,” “anticipates,” “intends,” “expects,” and
similar expressions. 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. Airgas assumes no obligation to revise or update any
forward-looking statements for any reason, except as required by
law. Important factors that could cause actual results to differ
materially from those contained in any forward-looking statement
include: changes in customer buying patterns or weakening in the
operating and financial performance of our customers, any of which
could negatively impact our sales and our ability to collect our
accounts receivable; postponement of projects due to economic
conditions; customer acceptance of price increases; increases in
energy costs and other operating expenses at a faster rate than our
ability to increase prices; changes in customer demand resulting in
our inability to meet minimum product purchase requirements under
long-term supply agreements and the inability to negotiate
alternative supply arrangements; supply cost pressures; shortages
and/or disruptions in the supply chain of certain gases; EPA
rulings and the pace and manner of U.S. compliance with the
Montreal Protocol as they relate to the production and import of
Refrigerant-22 (also known as HCFC-22 or R-22); higher than
expected expenses associated with our e-Business platform, the
adjustment of our regional management structures, our strategic
pricing initiatives and other strategic growth initiatives;
increased industry competition; our ability to successfully
identify, consummate, and integrate acquisitions; our ability to
achieve anticipated acquisition synergies; operating costs
associated with acquired businesses; our ability to successfully
build, complete in a timely manner and operate our new plants; our
continued ability to access credit markets on satisfactory terms;
significant fluctuations in interest rates; the impact of changes
in credit market conditions on our customers; our ability to
effectively leverage our new SAP system to improve the operating
and financial performance of our business; changes in tax and
fiscal policies and laws; increased expenditures relating to
compliance with environmental and other regulatory initiatives; the
impact of new environmental, healthcare, tax, accounting, and other
regulations; the extent and duration of sluggish conditions in the
U.S. economy, including in particular, the U.S. industrial economy;
the economic recovery in the U.S.; catastrophic events and/or
severe weather conditions; political and economic uncertainties
associated with current world events; and other factors described
in the Company's reports, including its March 31, 2014 Form 10-K,
subsequent Forms 10-Q, and other forms filed by Airgas with the
SEC.
Reconciliations of Non-GAAP Financial
Measures (Unaudited)
Return on Capital
Reconciliations and computations of return
on capital:
($ in millions) FY18 Goal TTM 9/30/14
Operating Income - Trailing Twelve Months $ 1,020 $ 636 5-Quarter
Averages: Total Assets $ 6,925 $ 5,790
Current Liabilities (exclusive of
debt)
(550 ) (536 ) Average Capital Employed $ 6,375
$ 5,254 Return on Capital 16.0 % 12.1 %
The Company believes its return on capital financial measure
helps investors assess how effectively it uses the capital invested
in its operations. Non-GAAP financial measures should be read in
conjunction with GAAP financial measures, as non-GAAP financial
measures are merely a supplement to, and not a replacement for,
GAAP financial measures. It should be noted as well that the
Company’s return on capital financial measure may be different from
the return on capital financial measures provided by other
companies.
Airgas, Inc.Investor Contact:Joseph
Marczely, 610-263-8277joseph.marczely@airgas.comorMedia Contact:Sarah Boxler,
610-263-8260sarah.boxler@airgas.com
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