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): July 28, 2015
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 2.02 Results of Operations and Financial Condition.
On July 28, 2015, Airgas, Inc. (the “Company”) reported its earnings for
its first quarter ended June 30, 2015, as described in the press release
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 July 28, 2015
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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July 28, 2015
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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 July 28, 2015
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Exhibit 99.1
Airgas
Reports Fiscal 2016 First Quarter Earnings
-
Organic
sales up 2% compared to prior year; Distribution organic sales flat;
All Other Operations organic sales up 16%
-
Diluted
EPS of $1.16, in line with guidance; prior year diluted EPS was $1.18
-
Free
cash flow* of $120 million, up 15% over prior year
-
Updated
fiscal year 2016 diluted EPS guidance to $4.90 to $5.05, representing
1% to 4% growth over fiscal 2015 diluted EPS, prior fiscal year 2016
diluted EPS guidance was $4.85 to $5.15
RADNOR, Pa.--(BUSINESS WIRE)--July 28, 2015--Airgas, Inc. (NYSE: ARG),
one of the nation’s leading suppliers of industrial, medical, and
specialty gases, and related products, today reported earnings per
diluted share of $1.16 for its first quarter ended June 30, 2015, down
2% compared to the prior year earnings per diluted share of $1.18, in
line with the Company’s expectations and reflective of the challenging
economic conditions.
First quarter sales increased 3% over the prior year to $1.3 billion.
Organic sales were up 2% over the prior year, with gas and rent up 5%
and hardgoods down 3%. In the Distribution segment, organic sales were
flat compared to the prior year, with gas and rent up 2% and hardgoods
down 3%. In the All Other Operations segment, organic sales were up 16%,
primarily driven by increased sales in the refrigerants, CO2
and dry ice businesses. Acquisitions contributed sales growth of 1% in
the quarter on both a consolidated basis and in the Distribution segment.
“Cash flows were again strong, and we delivered earnings squarely in the
middle of our guidance range. As anticipated, sales to our customers
engaged in the energy and chemical and the manufacturing and metal
fabrication sectors remained challenged through the quarter,” said
Airgas President and Chief Executive Officer Michael L. Molinini. “One
bright spot is the continued strength we are seeing in non-residential
construction. After a relatively slow calendar 2014, our March 2015
quarter saw year-over-year growth in non-residential construction of 5%
and this quarter year-over-year growth reached 6%. We remain focused on
things we can control including leveraging our industry leading platform
and managing expenses.”
Selling, distribution, and administrative expenses increased 4% over the
prior year, with operating costs associated with acquired businesses
representing approximately 1% of the increase. The balance of the
increase reflects normal inflation and rising healthcare costs, as well
as the incremental costs to support strong sales growth in the All Other
Operations segment. Selling, distribution, and administrative expenses
in the Distribution segment increased 2% over the prior year, excluding
the impact of operating costs associated with acquired businesses.
Operating margin was 11.3%, down 50 basis points compared to the prior
year, primarily reflecting the impact of the increase in selling,
distribution, and administrative expenses in the current low organic
sales growth environment related to our Distribution segment.
Free cash flow* for the quarter was $120 million, up 15% over the prior
year, and adjusted cash from operations* was $232 million, up 13% over
the prior year. During the first quarter, the Company repurchased 1.0
million shares on the open market for $104 million, reflecting an
average price of $103.84 per share.
Return on capital* was 11.8% for the 12 months ended June 30, 2015, down
30 basis points compared to the prior year.
From the beginning of its fiscal year through July 27, the Company has
acquired nine businesses with aggregate annual sales of approximately
$74 million, including industrial gas and welding supply distributor
Weldinghouse, Inc, and the nitrogen services business of Priority Energy
Services, LLC.
Guidance
“We share the Fed’s view of tempered optimism on the economic outlook in
the near-term and the level of uncertainty in the marketplace makes it
difficult for us to predict our near-term sales outlook. While we are
encouraged by some bright spots, such as the increased activity of many
of our construction customers, our strong cash flow and increased
acquisition activity, the overall sluggishness in the industrial economy
tempers our near-term optimism. Long-term, we believe the fundamental
growth prospects for the U.S. economy are strong. Through past
investments we’ve made to improve our platform, systems and product and
service offering, we have positioned Airgas for growth when the economy
improves. Consistent with our demonstrated track record, we remain
committed to delivering sustainable long-term value to our customers and
shareholders,” said Airgas Executive Chairman Peter McCausland. “The low
end of our fiscal 2016 guidance assumes a very modest uptick in growth
rates as the year progresses, with average organic sales growth in the
low single digits for the full year. The high end assumes acceleration
in growth rates over the course of the year, with average organic sales
growth in the mid single digits for the full year.”
For the second quarter of fiscal year 2016, the Company expects earnings
per diluted share in the range of $1.28 to $1.33, compared to prior year
earnings per diluted share of $1.30. Second quarter guidance includes a
$0.00 to $0.02 per diluted share negative year-over-year impact from
variable compensation reset following a below-budget year as well as a
$0.01 to $0.02 per diluted share negative year-over-year impact from
near term net cost pressure related to helium diversification and supply
extension initiatives. Second quarter guidance assumes a year-over-year
organic sales growth rate in the low single digits.
For the full fiscal year 2016, the Company expects earnings per diluted
share in the range of $4.90 to $5.05, reflecting a 1% to 4% increase
over prior year earnings per diluted share. Full year guidance includes
a $0.00 to $0.09 per diluted share negative year-over-year impact from
variable compensation reset following a below-budget year as well as a
$0.06 to $0.09 per diluted share negative year-over-year impact from
near term net cost pressure related to helium diversification and supply
extension initiatives and a $0.03 per diluted share benefit from share
repurchases made through June 30. Full year guidance assumes a
year-over-year organic sales growth rate in the low to mid single digits.
Second quarter and full fiscal year 2016 guidance does not include the
impact of any additional share repurchases that may occur subsequent to
June 30 under the Company’s current authorized share repurchase program.
The Company’s previous full fiscal year 2016 earnings per diluted share
guidance was $4.85 to $5.15.
The Company will conduct an earnings teleconference at 10:00 a.m.
Eastern Time on Tuesday, July 28. The teleconference will be available
by calling 888-551-9018 (U.S./Canada) or 719-325-2349 (International).
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 Relations” section of the Company’s website 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 August 4. To
listen, call 888-203-1112 (U.S./Canada) or 719-457-0820 (International)
and enter passcode 8117609.
* See attached reconciliations and computations of non-GAAP adjusted
cash from operations, free cash flow, and return on capital financial
measures.
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. Approximately 17,000 associates work in more than 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.
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: our expectations regarding our fiscal
2016 second quarter and full fiscal year 2016 organic sales growth and
earnings per diluted share; our management of expenses. 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: the impact from the decline in oil prices on our customers;
adverse 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 and
uncertainty in the energy sector; the impact of the strong dollar on our
manufacturer customers that export; 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,
including our helium supply initiatives; EPA rulings and the impact in
the marketplace of U.S. compliance with the Montreal Protocol as related
to the production and import of Refrigerant-22 (also known as HCFC-22 or
R-22); our ability to successfully build, complete in a timely manner
and operate our new facilities; higher than expected expenses associated
with the expansion of our telesales business, 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
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 overall U.S.
industrial economy; 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, 2015 Form 10-K, and other forms filed by the
Company with the SEC.
Consolidated statements of earnings, condensed consolidated balance
sheets, consolidated statements of cash flows, and reconciliations and
computations of non-GAAP financial measures follow below.
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AIRGAS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(Amounts in thousands, except per share data)
(Unaudited)
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Three Months Ended
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June 30,
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2015
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2014
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Net sales
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$
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1,349,710
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$
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1,313,587
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Costs and expenses:
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Cost of products sold (excluding depreciation)
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597,166
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583,406
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Selling, distribution and administrative expenses
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513,776
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494,713
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Depreciation
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78,075
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72,635
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Amortization
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8,115
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7,752
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Total costs and expenses
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1,197,132
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1,158,506
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Operating income
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152,578
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155,081
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Interest expense, net
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(14,036
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)
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(16,139
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)
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Other income, net
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1,425
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1,869
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Earnings before income taxes
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139,967
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140,811
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Income taxes
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(51,732
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)
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(51,959
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)
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$
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88,235
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$
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88,852
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Net earnings per common share:
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Basic earnings per share
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$
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1.17
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$
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1.20
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Diluted earnings per share
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$
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1.16
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$
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1.18
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Weighted average shares outstanding:
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Basic
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75,206
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74,272
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Diluted
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76,105
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75,483
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See attached Notes.
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AIRGAS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
(Unaudited)
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June 30,
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March 31,
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2015
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2015
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ASSETS
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Cash
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$
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72,208
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$
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50,724
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Trade receivables, net
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718,856
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708,227
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Inventories, net
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460,842
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474,070
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Deferred income tax asset, net
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58,290
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58,072
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Prepaid expenses and other current assets
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93,131
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124,591
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TOTAL CURRENT ASSETS
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1,403,327
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1,415,684
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Plant and equipment, net
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3,026,338
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2,951,766
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Goodwill
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1,328,551
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1,313,644
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Other intangible assets, net
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248,765
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244,519
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Other non-current assets
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47,796
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47,997
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TOTAL ASSETS
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$
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6,054,777
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$
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5,973,610
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LIABILITIES AND STOCKHOLDERS’ EQUITY
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Accounts payable, trade
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$
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188,330
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$
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206,187
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Accrued expenses and other current liabilities
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363,758
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346,879
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Short-term debt
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415,964
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325,871
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Current portion of long-term debt (a)
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500,063
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250,110
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TOTAL CURRENT LIABILITIES
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1,468,115
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1,129,047
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Long-term debt, excluding current portion (a)
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1,525,442
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1,748,662
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Deferred income tax liability, net
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849,477
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854,574
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Other non-current liabilities
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|
89,655
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|
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|
89,741
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Stockholders’ equity
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|
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|
2,122,088
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|
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2,151,586
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
$
|
6,054,777
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|
$
|
5,973,610
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See attached Notes.
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AIRGAS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
(Unaudited)
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Three Months Ended
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June 30,
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2015
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2014
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CASH FLOWS FROM OPERATING ACTIVITIES
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Net earnings
|
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$
|
88,235
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|
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$
|
88,852
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|
Adjustments to reconcile net earnings to net cash provided by
operating activities:
|
|
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|
|
|
|
|
|
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Depreciation
|
|
|
|
78,075
|
|
|
|
|
72,635
|
|
Amortization
|
|
|
|
8,115
|
|
|
|
|
7,752
|
|
Deferred income taxes
|
|
|
|
(5,828
|
)
|
|
|
|
(4,554
|
)
|
Gain on sales of plant and equipment
|
|
|
|
(1,731
|
)
|
|
|
|
(959
|
)
|
Stock-based compensation expense
|
|
|
|
13,650
|
|
|
|
|
14,830
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in assets and liabilities, excluding effects of business
acquisitions:
|
|
|
|
|
|
|
|
|
|
|
Trade receivables, net
|
|
|
|
(9,151
|
)
|
|
|
|
(9,104
|
)
|
Inventories, net
|
|
|
|
15,064
|
|
|
|
|
347
|
|
Prepaid expenses and other current assets
|
|
|
|
32,548
|
|
|
|
|
1,163
|
|
Accounts payable, trade
|
|
|
|
(18,130
|
)
|
|
|
|
(7,473
|
)
|
Accrued expenses and other current liabilities
|
|
|
|
23,211
|
|
|
|
|
31,567
|
|
Other, net
|
|
|
|
(315
|
)
|
|
|
|
1,916
|
|
Net cash provided by operating activities
|
|
|
|
223,743
|
|
|
|
|
196,972
|
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
|
(155,719
|
)
|
|
|
|
(108,580
|
)
|
Proceeds from sales of fixed assets
|
|
|
|
5,153
|
|
|
|
|
5,452
|
|
Business acquisitions and holdback settlements
|
|
|
|
(26,182
|
)
|
|
|
|
(23,463
|
)
|
Other, net
|
|
|
|
917
|
|
|
|
|
(1,113
|
)
|
Net cash used in investing activities
|
|
|
|
(175,831
|
)
|
|
|
|
(127,704
|
)
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in short-term debt
|
|
|
|
89,818
|
|
|
|
|
(335,015
|
)
|
Proceeds from borrowings of long-term debt
|
|
|
|
28,939
|
|
|
|
|
300,528
|
|
Repayment of long-term debt
|
|
|
|
(4,579
|
)
|
|
|
|
(553
|
)
|
Financing costs
|
|
|
|
(29
|
)
|
|
|
|
(2,133
|
)
|
Purchase of treasury stock (b)
|
|
|
|
(103,839
|
)
|
|
|
|
-
|
|
Proceeds from the exercise of stock options
|
|
|
|
6,977
|
|
|
|
|
11,578
|
|
Stock issued for the Employee Stock Purchase Plan
|
|
|
|
4,836
|
|
|
|
|
4,602
|
|
Excess tax benefit realized from the exercise of stock options
|
|
|
|
3,891
|
|
|
|
|
4,063
|
|
Dividends paid to stockholders
|
|
|
|
(44,873
|
)
|
|
|
|
(40,914
|
)
|
Change in cash overdraft
|
|
|
|
(7,569
|
)
|
|
|
|
(3,673
|
)
|
Net cash used in financing activities
|
|
|
|
(26,428
|
)
|
|
|
|
(61,517
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Change in cash
|
|
|
$
|
21,484
|
|
|
|
$
|
7,751
|
|
Cash – Beginning of period
|
|
|
|
50,724
|
|
|
|
|
69,561
|
|
Cash – End of period
|
|
|
$
|
72,208
|
|
|
|
$
|
77,312
|
|
|
|
|
|
|
|
|
|
|
|
|
See attached Notes.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
|
|
|
|
|
|
a)
|
|
In June 2015, the Company's $250 million 2.95% senior notes maturing
June 2016 were reclassified to the "Current portion of long-term
debt" line item of the Company's Consolidated Balance Sheet.
|
|
|
|
|
|
|
|
b)
|
|
On May 28, 2015, the Company announced a $500 million share
repurchase program. During the three months ended June 30, 2015, the
Company repurchased 1.0 million shares on the open market at an
average price of $103.84. At June 30, 2015, $396 million was
available for additional share repurchases under the program.
|
|
|
|
|
|
|
|
c)
|
|
Business segment information for the Company's Distribution and All
Other Operations business segments is presented in the following
tables. Amounts in the "Eliminations and Other" column reported for
net sales and cost of products sold (excluding depreciation)
represent the elimination of intercompany sales and associated gross
profit on sales from the Company's All Other Operations business
segment to the Distribution business segment.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
|
Three Months Ended
|
|
|
Three Months Ended
|
|
|
|
June 30, 2015
|
|
|
June 30, 2014
|
(In thousands)
|
|
|
Dist.
|
|
|
All
Other
Ops.
|
|
|
Elim.
& Other
|
|
|
Total
|
|
|
Dist.
|
|
|
All
Other
Ops.
|
|
|
Elim.
& Other
|
|
|
Total
|
Gas and rent
|
|
|
$
|
717,642
|
|
|
$
|
160,027
|
|
|
$
|
(7,596
|
)
|
|
|
$
|
870,073
|
|
|
$
|
696,565
|
|
|
$
|
136,092
|
|
|
$
|
(7,066
|
)
|
|
|
$
|
825,591
|
Hardgoods
|
|
|
|
478,266
|
|
|
|
1,374
|
|
|
|
(3
|
)
|
|
|
|
479,637
|
|
|
|
487,047
|
|
|
|
951
|
|
|
|
(2
|
)
|
|
|
|
487,996
|
Total net sales
|
|
|
|
1,195,908
|
|
|
|
161,401
|
|
|
|
(7,599
|
)
|
|
|
|
1,349,710
|
|
|
|
1,183,612
|
|
|
|
137,043
|
|
|
|
(7,068
|
)
|
|
|
|
1,313,587
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of products sold (excluding depreciation)
|
|
|
|
521,240
|
|
|
|
83,525
|
|
|
|
(7,599
|
)
|
|
|
|
597,166
|
|
|
|
520,933
|
|
|
|
69,541
|
|
|
|
(7,068
|
)
|
|
|
|
583,406
|
Selling, distribution and administrative expenses
|
|
|
|
464,809
|
|
|
|
48,967
|
|
|
|
-
|
|
|
|
|
513,776
|
|
|
|
449,639
|
|
|
|
45,074
|
|
|
|
-
|
|
|
|
|
494,713
|
Depreciation
|
|
|
|
71,020
|
|
|
|
7,055
|
|
|
|
-
|
|
|
|
|
78,075
|
|
|
|
66,462
|
|
|
|
6,173
|
|
|
|
-
|
|
|
|
|
72,635
|
Amortization
|
|
|
|
7,162
|
|
|
|
953
|
|
|
|
-
|
|
|
|
|
8,115
|
|
|
|
6,724
|
|
|
|
1,028
|
|
|
|
-
|
|
|
|
|
7,752
|
Operating income
|
|
|
$
|
131,677
|
|
|
$
|
20,901
|
|
|
$
|
-
|
|
|
|
$
|
152,578
|
|
|
$
|
139,854
|
|
|
$
|
15,227
|
|
|
$
|
-
|
|
|
|
$
|
155,081
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliations of Non-GAAP Financial Measures (Unaudited)
|
|
Return on Capital
|
Reconciliations and computations of return on capital:
|
|
|
|
|
June 30,
|
(In thousands)
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
Operating income - trailing four quarters
|
|
|
$
|
638,775
|
|
|
|
$
|
629,002
|
|
|
|
|
|
|
|
|
|
|
|
|
Average of total assets
|
|
|
$
|
5,959,045
|
|
|
|
$
|
5,726,999
|
|
Average of current liabilities (exclusive of debt)
|
|
|
|
(555,551
|
)
|
|
|
|
(528,574
|
)
|
Average capital employed
|
|
|
$
|
5,403,494
|
|
|
|
$
|
5,198,425
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on capital
|
|
|
|
11.8
|
%
|
|
|
|
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.
|
Adjusted Cash from Operations, Adjusted Capital Expenditures,
and Free Cash Flow
|
Reconciliations and computations of adjusted cash from operations,
adjusted capital expenditures, and free cash flow:
|
|
|
|
|
|
Three Months Ended
|
|
|
|
June 30,
|
(In thousands)
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
|
$
|
223,743
|
|
|
|
$
|
196,972
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|
|
Stock issued for the Employee Stock Purchase Plan
|
|
|
|
4,836
|
|
|
|
|
4,602
|
|
Excess tax benefit realized from the exercise of stock options
|
|
|
|
3,891
|
|
|
|
|
4,063
|
|
Adjusted cash from operations
|
|
|
|
232,470
|
|
|
|
|
205,637
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital expenditures
|
|
|
|
(155,719
|
)
|
|
|
|
(108,580
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to capital expenditures:
|
|
|
|
|
|
|
|
|
|
|
Proceeds from sales of fixed assets
|
|
|
|
5,153
|
|
|
|
|
5,452
|
|
Operating lease buyouts
|
|
|
|
37,770
|
|
|
|
|
1,349
|
|
Adjusted capital expenditures
|
|
|
|
(112,796
|
)
|
|
|
|
(101,779
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Free cash flow
|
|
|
$
|
119,674
|
|
|
|
$
|
103,858
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in investing activities
|
|
|
$
|
(175,831
|
)
|
|
|
$
|
(127,704
|
)
|
Net cash used in financing activities
|
|
|
$
|
(26,428
|
)
|
|
|
$
|
(61,517
|
)
|
|
|
|
|
|
|
|
|
|
|
|
The Company believes its adjusted cash from operations, adjusted capital
expenditures, and free cash flow financial measures provide investors
meaningful insight into its ability to generate cash from operations,
which is available for servicing debt obligations and for the execution
of its business strategies, including acquisitions, the prepayment of
debt, the payment of dividends, or to support other investing and
financing activities. The Company’s free cash flow financial measure has
limitations and does not represent the residual cash flow available for
discretionary expenditures. Certain non-discretionary expenditures such
as payments on maturing debt obligations are excluded from the Company’s
computation of its free cash flow financial measure. 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 also be noted that
the Company’s adjusted cash from operations, adjusted capital
expenditures, and free cash flow financial measures may be different
from the adjusted cash from operations, adjusted capital expenditures,
and free cash flow 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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