FSH also posts a strong quarter; I don't follow it, but have included the verbiage from its PR, since it is an important trickle player (just never could be sure how pure a trickle play it was)
>>HAMPTON, N.H., Nov. 4 /PRNewswire-FirstCall/ -- Fisher Scientific International Inc. (NYSE: FSH - News), the world leader in serving science, today reported record sales and net income for the quarter and year- to-date period ended Sept. 30, 2002.
"Our results this quarter reflect continued growth in our domestic distribution business and improved profitability in our international distribution business," said Paul M. Montrone, chairman and chief executive officer of Fisher Scientific. "We continue to generate strong cash flow, allowing us to further strengthen our balance sheet and increase net income."
2002 Reported Results
Sales for the third quarter increased 13.9 percent to $830.9 million compared with $729.5 million in the corresponding period of 2001. Excluding the effect of foreign exchange, sales totaled $822.9 million, a 12.8 percent increase over the prior year. The company's e-commerce sales increased to $191.4 million during the quarter, or 23 percent of total sales, compared with $127.9 million, or 18 percent of total sales, in the third quarter of 2001.
For the nine-month period ended Sept. 30, 2002, sales totaled $2,416.3 million, a 13.7 percent increase from sales of $2,125.3 million in the same period last year. E-commerce sales increased to $540.2 million, or 22 percent of total sales, in the first nine months compared with $366.3 million, or 17 percent of total sales, in the first nine months of the prior year.
Reported income from operations for the quarter increased 27.4 percent to $66.5 million compared with $52.2 million in the same quarter last year, reflecting improvements in core operations, the impact of acquired businesses and the exclusion of goodwill amortization in 2002. Income from operations in the prior period includes $4.4 million of goodwill amortization. For the nine months ended Sept. 30, 2002, income from operations as reported was $183.0 million compared with $88.1 million in the same period of the prior year. Reported operating income in the prior-year period included $52.7 million in restructuring and other charges and $12.6 million of goodwill amortization.
Fisher reported diluted earnings per share (EPS) of 52 cents for the quarter versus EPS of 30 cents in the corresponding period of 2001 and EPS of 41 cents for the nine months ended Sept. 30, 2002, compared with EPS of 10 cents in the year-ago nine-month period.
Pro Forma Financial Results
To facilitate comparison with the prior-year periods in the following discussion, goodwill amortization has been excluded from the results of the prior-year periods. In addition, the discussion excludes previously disclosed nonrecurring and restructuring charges and credits for both periods, and this year's goodwill write-off. These items are outlined in the attached tables.
Income from operations for the quarter increased 17.5 percent to $66.5 million from $56.6 million in the third quarter of 2001. Earnings before interest, taxes, depreciation and amortization (EBITDA) increased 17.8 percent to $84.1 million in the third quarter compared with $71.4 million in the same period last year.
Third quarter net income increased 43.8 percent to $29.9 million compared with income of $20.8 million in the corresponding period of 2001, reflecting an improvement in operating income and a reduction in both interest expense and tax rate. Diluted EPS was 52 cents per share in the third quarter compared with 36 cents per share in the third quarter of 2001.
Income from operations for the nine-month period increased 18.3 percent to $181.5 million from $153.4 million during the same period last year. EBITDA increased 19.9 percent to $233.3 million for the nine-month period compared with $194.5 million in the year-ago nine-month period.
Net income for the nine-month period increased 53.3 percent to $75.9 million compared with income of $49.5 million in the first nine months of 2001. EPS was $1.31 per diluted share in the first nine months compared with 96 cents per diluted share in the same period of the prior year.
For the nine-month period, the company generated $124.2 million in cash from operations compared with $77.8 million in the same period last year, reflecting an increase in earnings and working capital management improvements. Capital expenditures for the nine-month period increased to $26.8 million from $23.8 million previously, reflecting continued investment in manufacturing and pharmaceutical services capabilities.
Business-Segment Results
Domestic distribution sales increased 15.6 percent to $716.9 million in the third quarter of 2002 compared with the same period last year. Operating income increased 17.8 percent to $58.1 million from $49.3 million in the corresponding period of 2001, reflecting the contribution of the Cole-Parmer acquisition and growth in the core business. Year to date, domestic distribution sales reached $2,087.1 million compared with $1,795.8 million for the first nine months of last year, a 16.2 percent increase. Operating income grew in the first nine months to $159.2 million, an 18.3 percent increase over the first nine months of 2001.
International distribution sales totaled $114.6 million for the third quarter, an 8.3 percent increase from the third quarter of 2001. Excluding foreign-exchange effects, sales were $108.4 million, or a 2.5 percent increase. For the latest quarter, operating income increased 34.9 percent to $5.8 million from $4.3 million in the year-ago period, reflecting benefits associated with the restructuring efforts initiated at the end of last year. Sales in the first nine months were $328.9 million compared with $320.2 million for the same period last year, while year-to-date operating income increased 21.9 percent to $15.6 million from $12.8 million in the corresponding period last year.
Sales within the laboratory-workstations segment remained flat with the prior year at $45.7 million. Operating income was $2.9 million compared with $2.8 million in the corresponding quarter of 2001. Year-to-date sales rose to $135.6 million, a 2.6 percent increase over the prior-year period. Operating income for the nine-month period was $7.4 million compared with $6.2 million in the prior year, reflecting an increase in manufacturing efficiencies. Backlog in the laboratory-workstations segment remained stable at $113 million.
Company Outlook
For 2002, Fisher continues to expect revenue growth, excluding foreign- exchange effects, of approximately 12 percent, and operating margins, excluding nonrecurring credits, in the 7.5 percent to 7.6 percent range versus 7.3 percent on a comparable basis in 2001. Our outlook by segment is as follows.
Segment Revenue Growth Rate Operating
(excluding foreign Margin
exchange)
Domestic 13.5%-14.0% 7.5%-7.7%
International 3.0%-3.5% 4.6%-4.9%
Lab Workstations 7.0%-7.5% 6.3%-6.6%
The company is raising its 2002 guidance for its operating cash flow to a range of $140 million to $150 million, up from the previously issued guidance of $120 million to $130 million, primarily due to improved working capital management. In addition, Fisher expects total capital expenditures of approximately $45 million for 2002, compared with prior estimates of $55 million to $65 million, reflecting a change in the timing of cash outlays for select facility-expansion projects.
Fisher expects EPS for 2002 to be at the high end of its previously announced guidance range of $1.70 to $1.75. This guidance excludes the cumulative effect of the accounting change for goodwill, the charges related to the April note offering and the restructuring credit.
For 2003, the company expects revenue growth, excluding foreign-exchange effects, of approximately 5.0 percent to 6.0 percent, operating margins in the 7.7 percent to 7.9 percent range, and a 30 percent tax rate.
Fisher estimates EPS for 2003 will be $2.10 to $2.15 based on an estimated weighted average of approximately 58.5 million diluted shares outstanding. The company estimates 2003 first-quarter EPS will be 44 cents to 46 cents.<<
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Cheers, Tuck |
