HAMPTON, N.H., May 1, 2002 /PRNewswire-FirstCall via COMTEX/ -- Fisher
Scientific International Inc. (NYSE: FSH), the world leader in serving science,
today reported record sales and strong earnings for the first quarter ended
March 31, 2002.
"Our centennial year is off to a great start, with Fisher achieving solid
results for another quarter," said Paul M. Montrone, chairman and chief
executive officer. "We're pleased with the continued trend of strong sales and
earnings. We also made considerable progress with the integration of Cole-
Parmer and are well on our way to achieving the expected synergies."
First-Quarter 2002 Results
Effective Jan. 1, 2002, in accordance with Statement of Financial Accounting
Standards No. 142, the company is no longer amortizing goodwill. To facilitate
comparison with the prior-year period in the discussion below, goodwill
amortization of $3.8 million ($3.3 million, net of tax) has been excluded from
the 2001 quarter. In addition, the following discussion excludes nonrecurring
and restructuring charges totaling $52.7 million pretax ($33.2 million, net of
tax) recorded in the first quarter of the prior year.
Sales for the first quarter increased 12.9 percent to $775.5 million compared
with $687.0 million in the corresponding period of 2001. Excluding the effect of
foreign exchange, sales totaled $780.4 million, a 13.6 percent increase from
comparable sales in 2001. The company's e-commerce sales increased to $170.8
million during the quarter, or 22.0 percent of total sales, compared with $114.8
million, or 16.7 percent of total sales, in the first quarter of 2001.
First-quarter net income increased 54.7 percent to $19.8 million compared with
adjusted net income of $12.8 million in the first quarter of 2001. Earnings per
share (EPS) were 34 cents per diluted share in the first quarter compared with
28 cents per diluted share in the first quarter of 2001. Reported EPS was a loss
of 59 cents per diluted share in the first quarter of 2001. Earnings before
interest, taxes, depreciation and amortization (EBITDA), as adjusted, increased
21.8 percent to $71.5 million in the first quarter compared with $58.7 million
in the same period last year.
For the quarter, the company generated $1.3 million in cash from operations
compared with a use of cash of $11.6 million the prior year, reflecting an
increase in earnings and continued improvements in working capital management.
Capital expenditures for the quarter increased to $8.3 million, reflecting
continued investment in chemical manufacturing and pharmaceutical services.
Business-Segment Results
Domestic distribution sales increased 16.9 percent to $670.3 million in the
first quarter of 2002 compared with the same period last year. Operating income
increased 18.8 percent to $47.4 million from $39.9 million in the corresponding
period of 2001.
International distribution sales totaled $107.8 million for the first quarter, a
2.5 percent decrease from the first quarter of 2001. Excluding foreign-exchange
effects, sales were $111.8 million, representing a 1.1 percent increase over the
prior year. For the latest quarter, operating income totaled $4.8 million, down
slightly from $5.1 million in the prior year. This segment's first-quarter
performance reflects expected disruptions associated with the restructuring plan
announced in the fourth quarter of 2001. The plan has been fully implemented and
this segment is well positioned to meet previously announced full-year earnings
expectations.
First-quarter sales of the laboratory-workstations segment increased 1.9 percent
to $42.6 million, while operating income was $1.7 million compared with $1.5
million in the corresponding quarter of 2001. Order activity in the
laboratory-workstations segment continued to be strong in the first quarter with
backlog remaining at a near-record level of $109 million.
Special Items
In February, Fisher completed a secondary offering of 7.4 million shares of
common stock, furthering the company's goal to increase its float and broaden
ownership of its stock. Public ownership is now at approximately 50 percent of
shares outstanding compared with 36 percent prior to the offering.
In April, Fisher issued $150 million of 8.125 percent senior subordinated notes
due 2012. The company used the proceeds from the offering, along with proceeds
from its accounts receivable securitization facility, to repay bank term debt
totaling $212 million. As a result of the refinancing, the company will take a
pretax charge totaling approximately $11.7 million ($7.4 million, net of tax) in
the second quarter, consisting of $7.6 million of swap unwind costs and $4.1
million in recognition of deferred financing and other costs associated with the
senior bank debt. Excluding these charges, the company will realize savings of
approximately $3.0 million, or 3 cents per diluted share, in 2002 interest
expense.
Also in April, as a result of Fisher's continued strong financial performance,
Standard & Poor's upgraded the company's senior corporate credit rating to
double-'B'-minus from single-'B'-plus, and Moody's has changed its ratings
outlook for the company to positive from stable.
Company Outlook
As mentioned previously, Fisher has adopted Statement of Financial Accounting
Standards No. 141, "Business Combinations" ("SFAS 141") and Statement of
Financial Accounting Standards No. 142, "Goodwill and Other Intangible Assets"
("SFAS 142") effective Jan. 1, 2002. These statements require that goodwill and
intangible assets with indefinite lives not be amortized, and also require the
company to review its goodwill for impairment by the end of the second quarter
and write it down by the end of 2002 if it is determined to be impaired.
For 2002, Fisher continues to expect revenue growth, excluding foreign- exchange
effects, of approximately 11 percent to 12 percent, and operating margins,
reflecting the accounting changes described above, in the 7.5 percent to 7.8
percent range versus 7.3 percent in 2001. Our outlook by segment is consistent
with previous guidance and is as follows:
Segment Revenue Growth Rate Operating Margin
(excluding foreign exchange)
Domestic 13.0%-14.0% 7.7%-7.9%
International 3.5%-4.0% 4.6%-4.9%
Lab Workstations 2.5%-3.0% 5.3%-5.6%
As previously announced, Fisher increased its EPS guidance for 2002 from a range
of $1.62 to $1.67 to a range of $1.65 to $1.70 based on an estimated weighted
average of approximately 58.6 million diluted shares outstanding. This excludes
charges related to the April 2002 note offering and any transitional
impairment-related write-offs that may be recorded once the company's evaluation
of the effect of SFAS 142 is completed. EPS for the second quarter is expected
to be 41 cents to 43 cents.
Upcoming Presentations
Fisher Scientific will present at the following conferences:
* Deutsche Bank Securities Inc. 27th Annual Health Care Conference at 11
a.m. EDT on May 7 at the Waterfront Marriott in Baltimore
* Robert W. Baird & Co. 2002 Growth Stock Conference at 4:15 p.m. CDT on
May 9 at the Four Seasons Hotel in Chicago
* Goldman Sachs 23rd Annual Healthcare Conference at 11 a.m. PDT on June
12 at the Ritz-Carlton Laguna Niguel in Dana Point, Calif.
Conference Call Scheduled
Fisher will host a teleconference to discuss its first quarter financial results
and 2002 guidance tomorrow, May 2, at 10 a.m. EDT. Interested parties who would
like to participate may call 877-648-7975 (ID: Fisher Scientific). International
callers should dial (+1) 706-634-2332. Following the call, an audio replay will
be available for 10 days. Callers from the United States should dial
800-642-1687. International callers should dial (+1) 706-645-9291. The
conference replay code is 2550964. The conference call also will be webcast on
Fisher's Web site (www.fisherscientific.com). The webcast may be accessed on the
Investor Relations Info page and will be archived until June 1.
About Fisher Scientific International Inc.
Fisher Scientific International Inc. (NYSE: FSH) is the world leader in serving
science. We enable scientific discovery and clinical-laboratory testing services
by offering more than 600,000 products and services to over 350,000 customers in
approximately 145 countries. As a result of its broad product offering,
electronic-commerce capabilities, and integrated global logistics network,
Fisher serves as a one-stop source of products, services and global solutions
for many of its customers. The company's primary target markets are scientific
research and healthcare. Additional information about Fisher is available on the
company's Web site at www.fisherscientific.com.
This announcement includes forward-looking statements. Fisher Scientific has
based these forward-looking statements on its current expectations and
projections about future events. Although Fisher Scientific believes that its
assumptions made in connection with the forward-looking statements are
reasonable, no assurances can be given that its assumptions and expectations
will prove to have been correct. These forward-looking statements are subject to
various risks, uncertainties and assumptions. Fisher Scientific undertakes no
obligation to publicly update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise. In light of these
risks, uncertainties and assumptions, the forward-looking events discussed in
this announcement might not occur.
Fisher Scientific International Inc.
Statement of Operations
(in millions, except per share data)
(UNAUDITED)
Three Months Ended
March 31,
2002 2001
Sales $ 775.5 $ 687.0
Cost of sales 570.4 512.6
Selling, general and administrative expense 151.3 132.8
Restructuring and other charges - 51.6
Income (loss) from operations 53.8 (10.0)
Interest expense 23.9 26.4
Other (income) expense, net (0.1) 0.5
Income (loss) before income taxes 30.0 (36.9)
Income tax provision (benefit) 10.2 (13.2)
Net income (loss) $ 19.8 $ (23.7)
Net income (loss) per common share:
Basic $ 0.37 $ (0.59)
Diluted $ 0.34 $ (0.59)
Weighted average common shares outstanding:
Basic 54.2 40.1
Diluted 57.6 40.1
Supplementary Information:
The following amounts exclude nonrecurring, restructuring-related charges
and goodwill amortization:
Income (loss) from operations $ 53.8 $ (10.0)
Add restructuring and other charges - 51.6
Add nonrecurring operating charges - 1.1
Add goodwill amortization - 3.8
Income from operations excluding nonrecurring,
restructuring-related charges and
goodwill amortization $ 53.8 $ 46.5
Net income (loss) $ 19.8 $ (23.7)
Add restructuring and other charges, net of tax - 32.5
Add nonrecurring operating charges, net of tax - 0.7
Add goodwill amortization, net of tax - 3.3
Net income excluding nonrecurring,
restructuring-related charges and
goodwill amortization $ 19.8 $ 12.8
Diluted net income per common share
excluding nonrecurring, restructuring-related
charges and goodwill amortization $ 0.34 $ 0.28
Fisher Scientific International Inc.
Segment Results
(in millions)
(UNAUDITED)
Three Months Ended
March 31,
Growth
2002 2001 Rate
Revenue
Domestic Distribution $ 670.3 $ 573.5 16.9%
International Distribution 107.8 110.6 -2.5%
Laboratory Workstations 42.6 41.8 1.9%
Eliminations (45.2) (38.9)
Total $ 775.5 $ 687.0 12.9%
Three Months Ended
March 31,
Operating Operating
2002 Margin 2001 Margin
Operating Income
Domestic
Distribution $ 47.4 7.1% $ 39.9 7.0%
International
Distribution 4.8 4.5% 5.1 4.6%
Laboratory Workstations 1.7 4.0% 1.5 3.6%
Eliminations (0.1) -
Segment sub-total 53.8 6.9% 46.5 6.8%
Restructuring and
other charges - (51.6)
Nonrecurring operating
charges - (1.1)
Goodwill amortization - (3.8)
Operating income $ 53.8 $ (10.0)
Fisher Scientific International Inc.
Balance Sheet
(in millions)
March 31, December 31,
2002 2001
(UNAUDITED)
ASSETS
Current assets:
Cash and cash equivalents $ 63.1 $ 75.1
Receivables, net 364.3 332.0
Inventories 267.2 261.4
Other current assets 89.3 89.3
Total current assets 783.9 757.8
Property, plant and equipment 316.5 322.1
Goodwill 505.8 507.4
Other assets 248.2 251.9
Total assets $ 1,854.4 $ 1,839.2
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term debt $ 71.8 $ 75.7
Accounts payable 351.4 336.1
Accrued and other current liabilities 216.2 225.9
Total current liabilities 639.4 637.7
Long-term debt 954.1 956.1
Other liabilities 215.5 222.1
Total liabilities 1,809.0 1,815.9
Commitments and contingencies
Stockholders' equity:
Preferred stock - -
Common stock 0.5 0.5
Capital in excess of par value 668.8 661.1
Accumulated deficit (535.7) (555.5)
Accumulated other comprehensive loss (87.2) (81.8)
Treasury stock, at cost (1.0) (1.0)
Total stockholders' equity 45.4 23.3
Total liabilities and
stockholders' equity $ 1,854.4 $ 1,839.2
Fisher Scientific International Inc.
Condensed Statement of Cash Flows
(in millions)
(UNAUDITED)
Three Months Ended
March 31,
2002 2001
Cash flows from operating activities:
Net income (loss) $ 19.8 $ (23.7)
Depreciation and amortization 19.1 17.9
Other adjustments to reconcile net income to cash
provided by operating activities 0.5 40.7
Changes in working capital and
other assets and liabilities (38.1) (46.5)
Cash provided by (used in) operating
activities 1.3 (11.6)
Cash flows from investing activities:
Acquisitions, net of cash acquired - (151.5)
Capital expenditures (8.3) (6.0)
Other investing activity (0.6) (8.0)
Cash used in investing activities (8.9) (165.5)
Cash flows from financing activities:
Changes in the accounts receivable
securitization, net - 155.5
Other financing activity (3.6) 2.4
Cash provided by (used in) financing
activities (3.6) 157.9
Effect of exchange rate changes on cash (0.8) (1.6)
Net change in cash and cash equivalents (12.0) (20.8)
Cash and cash equivalents - beginning of period 75.1 66.0
Cash and cash equivalents - end of period $ 63.1 $ 45.2
SOURCE Fisher Scientific International Inc.
CONTACT:
media, Gia L. Oei, +1-603-929-2489, or
Gia.Oei@nh.fishersci.com, or
investors, Carolyn Miller, +1-603-929-2381, or
Carolyn.Miller@nh.fishersci.com, or Gregory Heinlein, +1-603-929-2384, or
Gregory.Heinlein@nh.fishersci.com, all of Fisher Scientific
URL: http://www.fisherscientific.com
