UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q/A
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended: June 30, 2001
Commission file number: 1-9344
AIRGAS, INC.
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(Exact name of registrant as specified in its charter)
Delaware 56-0732648
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
259 North Radnor-Chester Road, Suite 100
Radnor, PA 19087-5283
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(Address of principal executive offices) (ZIP code)
(610) 687-5253
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(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that
the registrant was required to file such reports), and (2) has been subject
to such filing requirements for the past 90 days. Yes X No
--- ---
Common Stock outstanding at August 23, 2001: 68,810,866 shares
1
EXPLANATORY NOTE
----------------
Airgas, Inc. (the "Company") is filing this Amendment on Form 10-Q/A
to the Company's Form 10-Q for the period ended June 30, 2001, which was
originally filed with the Securities and Exchange Commission on August 14,
2001. The Company is amending the previously filed Form 10-Q for the
purpose of including Note 13 to the Consolidated Financial Statements for
the quarter ended June 30, 2001 under Item 1 of Part I. The information
contained in Note 13 consists of supplementary financial information of
subsidiary guarantors related to the issuance of senior subordinated notes
on July 30, 2001.
Part I. Financial Information
Item 1. Financial Statements
AIRGAS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(13) SUPPLEMENTARY CONDENSED CONSOLIDATING FINANCIAL INFORMATION OF
SUBSIDIARY GUARANTORS
--------------------------------------------------------------
On July 30, 2001, the Company refinanced its revolving credit
facilities and issued $225 million of senior subordinated notes (the
"Notes"). The obligations of the Company under the Notes are
guaranteed by the Company's domestic subsidiaries that
guarantee the Company's new credit facilities (the "Guarantors"). The
Company's joint venture operations, foreign holdings and bankruptcy
remote special purpose entity (the "Non-guarantors") are not guarantors
of the Notes. The guarantees are made on a joint and several basis.
The claims of creditors of Non-guarantor subsidiaries have priority
over the rights of the Company to receive dividends or distributions
from such subsidiaries. Presented below is supplementary condensed
consolidating financial information for the Company, the Guarantors and
the Non-guarantors as of June 30, 2001 and March 31, 2001 and for the
three-month periods ended June 30, 2001 and 2000.
2
AIRGAS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Condensed Consolidating Balance Sheet
Senior Subordinated Notes
June 30, 2001
(In thousands, except
per share amounts)
Non- Elimination
Parent Guarantors Guarantors Entries Consolidated
-------------------------------------------------------------------
ASSETS
Current Assets
Trade receivables, net $ -- $ 4,325 $ 77,112 $ -- $ 81,437
Intercompany
receivable/(payable) 170 (15,726) 15,556 -- --
Inventories, net -- 153,890 4,080 -- 157,970
Deferred income tax asset, net 6,298 4,096 -- -- 10,394
Prepaid expenses and other
current assets 3,800 10,102 4,972 -- 18,874
---------- ---------- --------- ----------- ----------
Total current assets 10,268 156,687 101,720 -- 268,675
Plant and equipment, net 9,522 672,717 21,316 -- 703,555
Goodwill, net -- 430,055 10,431 -- 440,486
Other intangible assets, net 1,207 26,165 208 -- 27,580
Investments in unconsolidated
affiliates 56,961 6,473 15 -- 63,449
Investments in subsidiaries 1,160,027 -- -- (1,160,027) --
Intercompany
receivable/(payable) (116,532) 148,718 (32,186) -- --
Other non-current assets 3,632 15,685 212 -- 19,529
---------- ---------- --------- ----------- ----------
Total assets $1,125,085 $1,456,500 $ 101,716 $(1,160,027) $1,523,274
========== ========== ========= =========== ==========
LIABILITIES AND
STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable, trade $ 3,156 $ 72,358 $ 2,055 $ -- $ 77,569
Accrued expenses and other
current liabilities 44,985 78,212 1,832 -- 125,029
Current portion of
long-term debt -- 18,543 85 -- 18,628
---------- ---------- --------- ---------- ----------
Total current liabilities 48,141 169,113 3,972 -- 221,226
Long-term debt, excluding
current portion 562,541 9,799 27,232 -- 599,572
Deferred income tax
liability, net (1,409) 160,822 3,044 -- 162,457
Other non-current liabilities 5,788 24,782 (575) -- 29,995
Commitments and contingencies -- -- -- -- --
Stockholders' Equity
Preferred stock, no par value -- -- -- -- --
Common stock, par value $.01
per share 747 7 -- (7) 747
Capital in excess of par value 189,991 697,141 32,105 (729,246) 189,991
Retained earnings 369,047 395,135 36,555 (431,690) 369,047
Accumulated other
comprehensive loss (4,872) (239) (617) 856 (4,872)
Treasury stock (4,289) (60) -- 60 (4,289)
Employee benefits trust (40,600) -- -- -- (40,600)
---------- ---------- --------- ---------- ----------
Total stockholders' equity 510,024 1,091,984 68,043 (1,160,027) 510,024
---------- ---------- --------- ---------- ----------
Total liabilities and
stockholders' equity $1,125,085 $1,456,500 $ 101,716 $(1,160,027) $1,523,274
========== ========== ========= ========== ==========
3
AIRGAS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Condensed Consolidating Balance Sheet
Senior Subordinated Notes
March 31, 2001
(In thousands, except
per share amounts)
Non- Elimination
Parent Guarantors Guarantors Entries Consolidated
-------------------------------------------------------------------
ASSETS
Current Assets
Trade receivables, net $ -- $ 111,081 $ 32,048 $ -- $ 143,129
Intercompany
receivable/(payable) 170 (14,183) 14,013 -- --
Inventories, net -- 151,402 3,622 -- 155,024
Deferred income tax asset, net 6,297 3,846 -- -- 10,143
Prepaid expenses and other
current assets 10,167 13,901 1,481 -- 25,549
---------- ---------- --------- ---------- ----------
Total current assets 16,634 266,047 51,164 -- 333,845
Plant and equipment, net 6,851 677,480 20,315 -- 704,646
Goodwill, net -- 429,942 10,115 -- 440,057
Other intangible assets, net 1,120 28,345 203 -- 29,668
Investments in unconsolidated
affiliates 56,656 6,591 15 -- 63,262
Investments in subsidiaries 1,197,952 -- -- (1,197,952) --
Intercompany
receivable/(payable) (107,248) 99,842 7,406 -- --
Other non-current assets 5,294 4,311 207 -- 9,812
---------- ---------- --------- ----------- ----------
Total assets $1,177,259 $1,512,558 $ 89,425 $(1,197,952) $1,581,290
========== ========== ========= =========== ==========
LIABILITIES AND
STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable, trade $ 3,339 $ 71,045 $ 1,953 $ -- $ 76,337
Accrued expenses and other
current liabilities 41,291 88,253 1,329 -- 130,873
Current portion of
long-term debt 50,000 22,863 82 -- 72,945
---------- ---------- --------- ---------- ----------
Total current liabilities 94,630 182,161 3,364 -- 280,155
Long-term debt, excluding
current portion 585,465 10,354 24,845 -- 620,664
Deferred income tax
liability, net 194 157,906 3,076 -- 161,176
Other non-current liabilities 121 22,935 (610) -- 22,446
Commitments and contingencies -- -- -- -- --
Stockholders' Equity
Preferred stock, no par value -- -- -- -- --
Common stock, par value $.01
per share 744 7 -- (7) 744
Capital in excess of par value 188,629 754,926 31,783 (786,709) 188,629
Retained earnings 355,596 384,631 27,818 (412,449) 355,596
Accumulated other
comprehensive loss (1,153) (302) (851) 1,153 (1,153)
Treasury stock (3,982) (60) -- 60 (3,982)
Employee benefits trust (42,985) -- -- -- (42,985)
---------- ---------- --------- ---------- ----------
Total stockholders' equity 496,849 1,139,202 58,750 (1,197,952) 496,849
---------- ---------- --------- ---------- ----------
Total liabilities and
stockholders' equity $1,177,259 $1,512,558 $ 89,425 $(1,197,952) $1,581,290
========== ========== ========= ========== ==========
4
AIRGAS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Condensed Consolidating Statement of Earnings
Senior Subordinated Notes
Three Months Ended
June 30, 2001
Non- Elimination
(In thousands) Parent Guarantors Guarantors Entries Consolidated
---------------------------------------------------------------
Net sales $ -- $410,522 $ 5,153 $ -- $415,675
Costs and Expenses
Costs of products sold (excluding
depreciation and amortization) -- 210,928 1,295 -- 212,223
Selling, distribution and
administrative expenses 13,625 134,407 4,687 -- 152,719
Depreciation 690 14,440 542 -- 15,672
Amortization 110 2,071 96 -- 2,277
-------- -------- ------- ------- --------
Operating Income (Loss) (14,425) 48,676 (1,467) -- 32,784
Interest (expense) income, net (12,211) 805 493 -- (10,913)
(Discount) gain on securitization
of trade receivables -- (16,260) 14,768 -- (1,492)
Other income (expense), net 17,166 (17,339) (20) -- (193)
Equity in earnings of
unconsolidated affiliates 562 351 -- -- 913
-------- -------- ------- ------- --------
Earnings before income taxes (8,908) 16,233 13,774 -- 21,099
Income tax expense (benefit) (3,118) 5,728 5,038 -- 7,648
Equity in earnings of subsidiaries 19,241 -- -- (19,241) --
-------- -------- ------- -------- --------
Net Earnings $ 13,451 $ 10,505 $ 8,736 $(19,241) $ 13,451
======== ======== ======= ======== ========
5
AIRGAS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Condensed Consolidating Statement of Earnings
Senior Subordinated Notes
Three Months Ended
June 30, 2000
Non- Elimination
(In thousands) Parent Guarantors Guarantors Entries Consolidated
---------------------------------------------------------------
Net sales $ -- $403,200 $ 5,798 $ -- $408,998
Costs and Expenses
Costs of products sold (excluding
depreciation and amortization) -- 213,638 1,558 -- 215,196
Selling, distribution and
administrative expenses 6,783 131,163 2,069 -- 140,015
Depreciation 673 14,983 669 -- 16,325
Amortization 57 6,263 99 -- 6,419
-------- -------- ------- ------- --------
Operating Income (Loss) (7,513) 37,153 1,403 -- 31,043
Interest (expense) income, net (16,118) 179 174 -- (15,765)
Other income (expense), net 17,040 (16,991) 3 -- 52
Equity in earnings of
unconsolidated affiliates 716 710 (62) -- 1,364
------- -------- ------- ------- --------
Earnings before taxes (5,875) 21,051 1,518 -- 16,694
Income tax expense (benefit) (2,307) 8,490 695 -- 6,878
Equity in earnings of subsidiaries 13,384 -- -- (13,384) --
------- -------- ------- -------- --------
Net Earnings $ 9,816 $ 12,561 $ 823 $(13,384) $ 9,816
======= ======== ======= ======== ========
6
AIRGAS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Condensed Consolidating Statement of Cash Flows
Senior Subordinated Notes
Three Months Ended
June 30, 2001
Non- Elimination
(In thousands) Parent Guarantors Guarantors Entries Consolidated
---------------------------------------------------------------
Net cash provided by (used in)
operating activities $ 4,326 $135,255 $(40,492) $ -- $ 99,089
--------- -------- ------- ------- ---------
CASH FLOWS FROM INVESTING
ACTIVITIES
Capital expenditures (641) (15,681) (669) -- (16,991)
Proceeds from sales of plant
and equipment -- 309 -- -- 309
Dividends and fees from
unconsolidated affiliates 562 222 -- -- 784
Other, net 1,398 1,749 (819) -- 2,328
--------- -------- ------- ------- ---------
Net cash provided by (used in)
investing activities 1,319 (13,401) (1,488) -- (13,570)
--------- -------- ------- ------- ---------
CASH FLOWS FROM FINANCING
ACTIVITIES
Proceeds from borrowings 54,857 -- 2,514 -- 57,371
Repayment of debt (127,780) (9,950) (126) -- (137,856)
Purchase of treasury stock -- -- -- -- --
Exercise of stock options 826 -- -- -- 826
Cash overdraft -- (5,860) -- -- (5,860)
Inter-company 66,452 (106,044) 39,592 -- --
--------- -------- ------- ------- ---------
Net cash provided by (used in)
financing activities (5,645) (121,854) 41,980 -- (85,519)
--------- -------- ------- ------- ---------
CHANGE IN CASH $ -- $ -- $ -- $ -- $ --
Cash - Beginning of year -- -- -- -- --
--------- -------- ------- ------- ---------
Cash - End of year $ -- $ -- $ -- $ -- $ --
========= ======== ======= ======= =========
7
AIRGAS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Condensed Consolidating Statement of Cash Flows
Senior Subordinated Notes
Three Months Ended
June 30, 2000
Non- Elimination
(In thousands) Parent Guarantors Guarantors Entries Consolidated
---------------------------------------------------------------
Net cash provided by operating
activities $ 1,383 $ 10,052 $ 771 $ -- $ 12,206
-------- -------- ------- ------- --------
CASH FLOWS FROM INVESTING
ACTIVITIES
Capital expenditures -- (14,129) (877) -- (15,006)
Proceeds from sales of plant
and equipment -- 332 188 -- 520
Proceeds from divestitures -- 577 -- -- 577
Business acquisitions, net of
cash acquired -- (1,034) -- -- (1,034)
Dividends and fees from
unconsolidated affiliates -- 800 -- -- 800
Other, net -- 1,131 417 -- 1,548
-------- -------- ------- ------- --------
Net cash provided by (used in)
investing activities -- (12,323) (272) -- (12,595)
-------- -------- ------- ------- --------
CASH FLOWS FROM FINANCING
ACTIVITIES
Proceeds from borrowings 58,000 -- -- -- 58,000
Repayment of debt (43,000) (6,089) (398) -- (49,487)
Purchase of treasury stock (11,214) -- -- -- (11,214)
Exercise of stock options 532 -- -- -- 532
Cash overdraft -- 2,558 -- -- 2,558
Inter-company (5,701) 5,802 (101) -- --
-------- -------- ------- ------- --------
Net cash provided by (used in)
financing activities (1,383) 2,271 (499) -- 389
-------- -------- ------- ------- --------
CHANGE IN CASH $ -- $ -- $ -- $ -- $ --
Cash - Beginning of year -- -- -- -- --
-------- -------- ------- ------- --------
Cash - End of year $ -- $ -- $ -- $ -- $ --
======== ======== ======= ======= ========
8
SIGNATURES
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 thereunto duly authorized.
Airgas, Inc.
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(Registrant)
Date: August 24, 2001 /s/ Robert M. McLaughlin
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Robert M. McLaughlin
Vice President and Controller
(Principal Accounting Officer)
9