UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
DC 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date
of Report (Date of earliest event reported): December 4, 2014
AIRGAS,
INC.
(Exact name of registrant as specified in its
charter)
Delaware
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1-9344
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56-0732648
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(State or other jurisdiction of incorporation)
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(Commission File Number)
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(I.R.S. Employer Identification No.)
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259 North Radnor-Chester Road, Suite 100 Radnor,
PA 19087-5283
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(Address of principal executive offices)
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(610) 687-5253
(Registrant's telephone number, including
area code)
Check the
appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any
of the following provisions:
⃞
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
⃞
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
⃞
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
⃞
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Item 7.01 Regulation FD Disclosure.
On December 4, 2014, Airgas, Inc. (the “Company”) will hold its 2014
Analyst Meeting in Philadelphia, Pennsylvania. At the meeting, the
Company is announcing certain financial targets for fiscal year 2018. A
press release containing the financial targets is attached as Exhibit
99.1 and incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
(a) None
(b) None
(c) None
(d) Exhibits.
99.1 - Press Release dated December 4, 2014
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Dated:
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December 4, 2014
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AIRGAS, INC.
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(Registrant)
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BY:
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/s/ Thomas M. Smyth
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Thomas M. Smyth
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Vice President & Controller
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(Principal Accounting Officer)
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Exhibit Index
Exhibit 99.1
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Press Release dated December 4, 2014
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Exhibit 99.1
Airgas
Highlights Growth Opportunities, Provides Mid-Term Financial Goals at
its 2014 Analyst Meeting
RADNOR, Pa.--(BUSINESS WIRE)--December 4, 2014--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
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Reconciliations and computations of return on capital:
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($ in millions)
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FY18 Goal
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TTM 9/30/14
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Operating Income - Trailing Twelve Months
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$
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1,020
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$
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636
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5-Quarter Averages:
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Total Assets
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$
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6,925
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$
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5,790
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Current Liabilities (exclusive of debt)
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(550
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)
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(536
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Average Capital Employed
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$
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6,375
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$
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5,254
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Return on Capital
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16.0
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%
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12.1
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%
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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.
CONTACT:
Airgas, Inc.
Investor Contact:
Joseph Marczely,
610-263-8277
joseph.marczely@airgas.com
or
Media
Contact:
Sarah Boxler, 610-263-8260
sarah.boxler@airgas.com
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