| 2008-03-03 | Merger/Acquisition | Airgas, Inc., (NYSE:ARG) today announced it has acquired the assets and operations of Northeast Gas Technologies Ltd., an Albany, NY-based distributor of industrial, medical, and specialty gases and related supplies. The acquired business, with five locations in upstate New York and Vermont, generated $10 million in revenues in 2007.
Effective March 1, 2008, the acquired operations have been integrated into Airgas East, one of the regional companies within Airgas. The operations include a headquarters and industrial fill plant in Albany, NY, with branches in Vestal, Ithaca, and Hyde Park, NY, as well as Rutland, VT.
We are excited to welcome all 48 Northeast Gas Technologies employees to the Airgas East team, said Fred Manley, president of Airgas East. In the last dozen years, Rusty Baker and his team have expanded the gas and rent mix of their business, including industrial, bulk, specialty, and medical gas. We look forward to working with them to serve customers more effectively in all these areas.
Northeast Gas Technologies traces its roots back a half-century. In 1976, Donald Baker purchased the business and his son, Ross Rusty Baker, took over the business in 1996, expanding its scope dramatically. In 2001, it opened a modern cylinder fill plant, showroom, and corporate offices on Karner Road in Albany.
I want to thank the Northeast Gas Technologies employees for their excellent service and our many customers for their loyalty through the years, said Rusty Baker, who will assist in the transition of the business. Now, our people and our customers will have even greater opportunities to grow, with the support and resources of the industry leader, including a broader range of products and services.
Airgas East, headquartered in Salem, NH, includes more than 100 retail branches, 40 cylinder fill plants, and 11 ISO 9000 series certified specialty gas laboratories. More than 1,300 associates serve customers in New Hampshire, Vermont, Massachusetts, Rhode Island, Connecticut, New York, Pennsylvania, New Jersey, Maryland and northern Virginia. |
| 2008-02-04 | Merger/Acquisition | Airgas, Inc., (NYSE: ARG) today announced it has acquired Merriam-Graves Corporation, an independent distributor of industrial, medical, and specialty gases and related supplies operating in 25 locations in New England and New York. The acquired business generated $47 million in revenues in 2007.
Effective February 1, 2008, the acquired operations have been integrated into Airgas East, one of the regional companies within Airgas. Airgas East will transition Merriam-Graves in an orderly process over the next few months. The acquired operations include a headquarters, industrial fill plant, specialty gas laboratory, and central hardgoods warehouse in Charlestown, NH, plus six other locations in New Hampshire, six locations in Vermont, five locations in Massachusetts, five locations in Connecticut, and two in New York.
Merriam-Graves traces its roots to G.L. Merriam Company founded in 1924 and R.S. Graves Company founded in 1925. The firms merged in 1962 and in 1966, Merriam-Graves Corporation was purchased by Henry K. Wakeman, Jr. Since then, it has grown from two locations to its present size. Scott Wakeman joined the family business in 1980 and served as its chief executive officer. Another son, Kit, joined in 1988 and served as president.
We are excited to welcome Scott and Kit Wakeman, and all 225 Merriam-Graves associates to the Airgas team, said Fred Manley, president of Airgas East. They will find that their experience and entrepreneurial spirit will fit well with the Airgas culture. The added locations fill in our own network and help us serve customers in New England and New York more effectively.
Airgas East, headquartered in Salem, NH, includes 86 retail branches, 40 cylinder fill plants, and 11 ISO 9000 series certified specialty gas laboratories. More than 1,100 associates serve customers in New Hampshire, Vermont, Massachusetts, Rhode Island, Connecticut, New York, Pennsylvania, New Jersey, Maryland and northern Virginia.
Kit and I are excited to join Airgas and believe this transition offers the best opportunities to our talented staff and our loyal customers, said Scott Wakeman. I want to thank all of our employees for their untiring support over the years. Now, as part of the Airgas family of companies, we will be able to offer our customers an even greater array of products and services as we continue to provide solution-oriented customer service. |
| 2008-01-29 | Earnings/Dividends | RADNOR, Pa.--(BUSINESS WIRE)--Airgas, Inc. (NYSE:ARG) today announced that the Board of Directors increased the quarterly cash dividend on the companys common stock to $0.12 per share from $0.09. The dividend will be payable March 31, 2008 to shareholders of record as of March 13, 2008.
Growth in cash flow and earnings over the last two years make it appropriate to substantially increase our dividend, commented Airgas Chairman and CEO Peter McCausland. We look forward to maintaining our tradition of returning value to our shareholders through internal growth, acquisitions and dividend growth generally commensurate with earnings and cash flow.
About Airgas, Inc.
Airgas, Inc. (NYSE:ARG), through its subsidiaries, is the largest U.S. distributor of industrial, medical, and specialty gases, and hardgoods, such as welding equipment and supplies. Airgas is also one of the largest U.S. distributors of safety products, the largest U.S. producer of nitrous oxide and dry ice, the largest liquid carbon dioxide producer in the Southeast, and a leading distributor of process chemicals, refrigerants, and ammonia products. More than 14,000 employees work in over 1,100 locations, including branches, retail stores, gas fill plants, specialty gas labs, production facilities and distribution centers. Airgas also distributes its products and services through eBusiness, 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 may contain statements that are forward looking, as that term is defined by the Private Securities Litigation Reform Act of 1995 or by the Securities and Exchange Commission in its rules, regulations and releases. These statements include, but are not limited to, statements regarding: the Companys commitment to increasing the dividend commensurate with earnings and cash flow; and Company plans to continue to return value to shareholders. 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. Important factors that could cause actual results to differ materially from those contained in any forward-looking statement include: supply cost pressures; increased industry competition; our ability to successfully consummate and integrate acquisitions; a disruption to our business from integration problems associated with acquisitions; an economic downturn; adverse changes in customer buying patterns; significant fluctuations in interest rates; increases in energy costs and other operating expenses; the effect of catastrophic events; political and economic uncertainties associated with current world events; and other factors described in the Companys reports, including its Forms 10-K dated March 31, 2007, subsequent Forms 10-Q, and other reports filed by the Company with the Securities and Exchange Commission.
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| 2008-01-28 | Earnings/Dividends | RADNOR, Pa.--(BUSINESS WIRE)--Airgas, Inc. (NYSE:ARG), the largest U.S. distributor of industrial, medical, and specialty gases, and welding, safety, and related products, today reported strong growth in sales, operating income, and earnings for its third quarter ended December 31, 2007.
Quarterly net earnings were $56.8 million, or $0.67 per diluted share, compared to $32.5 million, or $0.40 per diluted share, in the prior year. The current year quarter includes $0.01 per diluted share of integration expense primarily associated with the acquisition of Lindes U.S. packaged gas business, and a one-time $0.01 per diluted share tax benefit related to a change in state tax law. The prior year quarter included a charge of $7.9 million after-tax, or $0.10 per diluted share, on the early extinguishment of debt. After adjusting the prior year quarter for the impact of the debt charge, net earnings grew 41%*.
Third quarter sales grew 28% over the prior year to $1 billion. Acquisitions contributed 21% to the sales growth. Total same-store sales increased 7%, with hardgoods up 6% and gas and rent up 8% from the prior year quarter. The Companys strategic product categories, including bulk, medical and specialty gases, safety products, and carbon dioxide, posted 11% organic growth in the quarter. These product categories now account for 40% of total Company revenues.
This was our second quarter with more than $1 billion in sales, demonstrating the effectiveness of our growth strategies. We are seeing good growth in energy and infrastructure construction, which has bolstered our core business. We continue to grow our strategic product categories at above-market rates, said Airgas Chairman and Chief Executive Officer Peter McCausland.
We also continue to grow through acquisitions. Fiscal 2008 is our second consecutive record year of acquired revenue, with a total of 16 acquisitions and $450 million in acquired annual revenue to date. The integration of the Linde packaged gas acquisition is progressing well and on schedule, positioning us well to deliver value to shareholders in the coming quarters, commented McCausland.
He also added, Revenue growth and our commitment to achieving efficiencies across our national platform helped us expand third quarter operating margins by 100 basis points over last year, to 11.8%. We generated strong Free Cash Flow of $69 million in the current quarter and $162 million year-to-date.
Airgas expects to earn $0.71 to $0.73 per diluted share in the fourth quarter, including $0.01 per share of integration expense from the Linde packaged gas acquisition. The Company is increasing its full-year guidance to $2.61 to $2.63 per diluted share, including integration expenses from the Linde packaged gas acquisition, the $0.03 per diluted share one-time non-cash charge from the National Welders transaction, and the $0.01 per diluted share one-time tax benefit related to a change in state tax law. The previously communicated guidance was $2.55 to $2.60 per diluted share for the full year.
The Company will conduct an earnings teleconference at 11:00 a.m. Eastern Time on Tuesday, January 29. The teleconference will be available by calling 888-233-7976. The presentation materials (this press release, slides to be presented during the Companys teleconference, and information about how to access a live and on-demand webcast of the teleconference) are available in the Investor Information section under the Company Information heading on the Companys Internet site at www.airgas.com. A webcast of the teleconference will be available live and on demand through February 29 at http://www.shareholder.com/arg/medialist.cfm. A replay of the teleconference will be available through February 5. To listen, call 888-203-1112 and enter passcode 8228341.
* See attached reconciliations of non-GAAP financial measures.
About Airgas, Inc.
Airgas, Inc. (NYSE:ARG), through its subsidiaries, is the largest U |