Airgas Reports Fiscal 2016 Second Quarter Earnings
Diluted EPS of $1.31, up 1% over prior year diluted EPS
Total sales up 1% over prior year; organic sales flat
Returned $315 million to shareholders through share repurchases and dividends in the second quarter
Year-to-date free cash flow* of $169 million, up 15% over prior year
Updated fiscal year 2016 diluted EPS guidance to $4.90 to $5.00, representing 1% to 3% growth over fiscal 2015 diluted EPS; prior fiscal year 2016 diluted EPS guidance was $4.90 to $5.05
RADNOR, PA – October 27, 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 $1.31 for its second quarter ended September 30, 2015, up 1% compared to the prior year earnings per diluted share of $1.30, in line with the Company’s expectations and reflective of the challenging economic conditions.
Second quarter sales increased 1% over the prior year to $1.4 billion. Organic sales were flat compared to the prior year, with gas and rent up 3% and hardgoods down 5%. In the Distribution segment, organic sales were down 1% compared to the prior year, with gas and rent up 2% and hardgoods down 5%. In the All Other Operations segment, organic sales were up 8%, 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 and 8% in the All Other Operations segment.
“Our results continue to reflect the challenging industrial economy with sales to customers in our energy and chemical, and manufacturing and metal fabrication end markets down year-over-year in the mid-single digits. However, our diversified end customer markets and continued strength in non-residential construction, together with tight expense management, helped to mitigate the impact of the sales declines in those end markets,” said Airgas President and Chief Executive Officer Michael L. Molinini. “The quarterly results demonstrated the resilience of our business during difficult economic times. In addition, despite flat sales and earnings, cash flow remains strong, with year-to-date free cash flow* up 15% over the prior period.”
Selling, distribution, and administrative expenses increased 3% over the prior year, with operating costs associated with acquired businesses accounting for approximately half of the increase. The balance of the increase primarily reflects the incremental costs to support strong organic sales growth in the All Other Operations segment. Selling, distribution, and administrative expenses in the Distribution segment increased 0.6% over the prior year, excluding the impact of operating costs associated with acquired businesses.
Operating margin was 12.4%, 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.
The following information was filed by Airgas Inc (ARG) on Tuesday, October 27, 2015 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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Ticker: ARG CIK: 804212 Form Type:10-Q Quarterly Report Accession Number: 0000804212-15-000033 Submitted to the SEC: Wed Nov 04 2015 5:04:15 PM EST Accepted by the SEC: Wed Nov 04 2015 Period: Wednesday, September 30, 2015 Industry: Wholesale Industrial Machinery And Equipment