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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 30, 1998
AIRGAS, INC.
______________________________________________________
(Exact name of registrant as specified in its charter)
Delaware 1-9344 56-0732648
_______________ _______________________ _____________
(State or other (Commission File Number) (I.R.S. Employer
jurisdiction of Identification
incorporation) No.)
259 North Radnor-Chester Road, Suite 100
Radnor, PA 19087
_________________________________________
(Address of principal executive offices)
Registrant's telephone number, including area code: (610) 687-5253
_______________
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Item 5. Other Events.
____________
On July 30, 1998, Airgas, Inc. reported its earnings for the first quarter
ended June 30, 1998, as described in the press release attached as Exhibit 99
and incorporated herein by reference.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
__________________________________________________________________
(a) None
(b) None
(c) Exhibits.
99 Press Release dated July 30, 1998
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Signatures
__________
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
AIRGAS, INC.
BY: /s/ Scott M. Melman
_______________________
Vice President &
Chief Financial Officer
DATED: July 31, 1998
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EXHIBIT 99.1
For More Information:
James R. Rapp
(610) 902-6224
AIRGAS, INC. REPORTS FIRST QUARTER RESULTS
- STRONG AFTER-TAX CASH FLOW
- SALES UP 21% IN QUARTER
- PLANNED REPOSITIONING EXPENSES CONTINUE TO
IMPACT PROFITS
RADNOR, Pennsylvania, July 30, l998 -- Airgas, Inc. (NYSE-ARG) today
reported sales of $401 million for the quarter ended June 30, 1998, an
increase of 21% from $331 million in the first quarter last year. After-tax
cash flow increased 8% to $34.9 million, or $.48 per share, compared to $32.3
million, or $.47 per share, for the same quarter last year. Net earnings for
the first quarter of fiscal 1999 were $11.3 million, or $.16 per share,
compared to $12.2 million, or $.18 per share, a year ago.
Repositioning costs of approximately $.03 per share, primarily for
computer conversions and upgrades and personnel expenses, were incurred in the
quarter. Earnings were helped by a penny per share resulting from the
reversal of excess reserves associated with the previously announced first
quarter divestiture of two non-strategic businesses.
Peter McCausland, Airgas' Chairman and Chief Executive Officer, said "We
continue to make important progress toward our goal of becoming a
multi-billion dollar, world-class distribution company. While profits were
impacted by planned repositioning costs, sales increased 21% and after-tax
cash flow increased 8%. We have acquired another seven distributors so far
this year and have monetized two non-strategic businesses. Most important,
our Repositioning Airgas For Growth initiative is gaining momentum and is on
schedule and on budget."
Airgas, Inc. is the largest distributor of industrial, medical and
specialty gases and related equipment in the United States. Its distributor
network includes over 700 locations in 44 states.
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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. Airgas intends 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 the making of such
statements should not be regarded as a representation by the Company 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 underlying market
conditions, continued growth in same-store sales, costs and potential
disruptive effects of the "Repositioning for Growth" initiative,
implementation of information technology projects, the success and timing of
intended divestitures and other factors described in the Company's reports,
including Form 10-K dated March 31, 1998, filed by the Company with the
Securities and Exchange Commission.
Consolidated statements of earnings and consolidated condensed balance
sheets follow on pages 3 and 4.
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<PAGE> 6 AIRGAS, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
(Amounts in thousands, except per share data)
(Unaudited)
Three Months Ended
June 30,
1998 1997 (a)
____ ____
Net sales:
Distribution $291,962 $271,269
Direct Industrial 68,591 36,845
Manufacturing 40,220 23,298
_______ _______
Total net sales 400,773 331,412
_______ _______
Costs and expenses:
Cost of products sold (excluding
depreciation, depletion and
amortization)
Distribution 146,677 137,463
Direct Industrial 50,674 26,005
Manufacturing 18,145 11,286
Selling, distribution and
administrative expenses 131,251 105,343
Depreciation, depletion and
amortization 21,597 17,815
Special charge (b) (1,000) -
_______ _______
Total costs and expenses 367,344 297,912
_______ _______
Operating income:
Distribution 27,656 28,694
Direct Industrial 884 1,104
Manufacturing 3,889 3,702
Special charge (b) 1,000 -
______ ______
Total operating income 33,429 33,500
Interest expense, net (14,806) (12,108)
Other income, net 188 473
Equity in earnings (loss)of
unconsolidated affiliates 754 (115)
Minority interest ( 66) (309)
______ ______
Earnings before income taxes 19,499 21,441
Income tax expense 8,224 9,215
______ ______
Net earnings $ 11,275 $ 12,226
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Per share data:
Basic earnings per share $ .16 $ .18
Diluted earnings per share $ .16 $ .18
Weighted average shares outstanding:
Basic 70,300 66,800
Diluted 72,100 69,200
(a)Certain reclassifications have been made to previously issued financial
statements to conform to the current presentation.
(b)Represents the reversal of excess reserves that were established at March
31, 1998 in connection with the divestiture of non-strategic businesses.
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AIRGAS, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(Amounts in thousands)
(Unaudited)
June 30, March 31,
1998 1998
__________ ________
ASSETS
Trade accounts receivable, net $ 194,928 $ 186,342
Inventories 163,688 154,937
Prepaids and other current assets 22,919 25,555
_________ _________
TOTAL CURRENT ASSETS 381,535 366,834
Property, plant and equipment, net 687,313 687,304
Goodwill, net 420,804 410,753
Other non-current assets, net 174,191 176,583
_________ _________
TOTAL ASSETS $1,663,843 $1,641,474
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current portion of long-term debt 8,898 12,150
Accounts payable, trade 85,413 84,602
Accrued expenses and other current liabilities 114,099 128,806
_________ _________
TOTAL CURRENT LIABILITIES 208,410 225,558
Long-term debt 855,016 830,845
Deferred income taxes 126,254 121,356
Other non-current liabilities 34,448 36,842
Stockholders' equity 439,715 426,873
_________ _________
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $1,663,843 $1,641,474
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