Fisher Scientific Reports Record Quarterly Sales and Operating Income EPS Outlook for 2002
Estimated at $1.52 to $1.57
HAMPTON, N.H., Nov. 1 /PRNewswire/ -- Fisher Scientific International Inc.
(NYSE: FSH), the world leader in serving science, today reported record sales
and operating income for the three- and nine-month periods ended Sept. 30,
2001, reflecting solid performance across all business segments.
Third-Quarter 2001 Results
Sales for the third quarter increased 10.1 percent to $729.5 million
compared with $662.3 million in the corresponding period of last year.
Excluding the effect of foreign exchange, sales totaled $732.0 million for the
latest quarter, a 10.5 percent increase from the year-ago period. The
company's e-commerce sales increased to $127.9 million, or 17.5 percent of
total sales, compared with $95.3 million, or 14.4 percent of total sales, in
the prior year's third quarter.
Earnings before interest, taxes, depreciation and amortization (EBITDA)
increased 15.6 percent to $71.3 million compared with $61.7 million, adjusted
for nonrecurring items, in the same period of last year. Operating income
increased 14.2 percent to $52.2 million for the third quarter compared with
$45.7 million, excluding nonrecurring expenses, a year ago.
Net income increased to $16.9 million for the third quarter compared with
$15.2 million, adjusted for nonrecurring items, during the same period last
year. Diluted earnings per share (EPS) were 30 cents for the 2001 third
quarter, the same as for the previous year's third quarter, when EPS reflected
a 31 percent tax rate resulting from tax-planning initiatives, which reduced
the annual tax rate from 45 percent to 40 percent. Adjusted for a 40 percent
tax rate and the dilutive effect of the equity offering in May 2001, EPS in
the third quarter of last year was 26 cents.
"Sales growth and operating margins continued to improve this quarter,
reflecting growth in our core businesses, increased demand for our lab
workstations and the contribution of acquisitions made earlier this year,"
said Paul M. Montrone, chairman and chief executive officer of Fisher
Scientific International. "Fisher's continued positive performance in the
current economic environment reflects the strength of our broad product and
service offering."
Year-to-Date Results
For the nine-month period ended Sept. 30, 2001, sales totaled $2,125.3
million, a 7.5 percent increase, compared with $1,977.6 million in the same
period last year. Excluding the effect of foreign exchange, sales totaled
$2,144.0 million for the first nine months, an 8.4 percent increase from the
first nine months of last year. E-commerce sales totaled $366.3 million, or
17.2 percent of total sales, in the first nine months compared with $266.3
million, or 13.5 percent of total sales, in the first nine months of the prior
year.
EBITDA, excluding nonrecurring and restructuring-related expenses, for the
nine-month period increased 11.7 percent to $194.4 million compared with
$174.0 million in the year-ago nine-month period. Year-to-date operating
income, excluding restructuring and other nonrecurring charges, increased to
$140.8 million compared with $125.9 million in the same period last year.
Net income, excluding nonrecurring and restructuring-related expenses,
increased 16.6 percent to $38.6 million for the first nine months compared
with net income of $33.1 million in the same period last year. Diluted EPS,
excluding nonrecurring expenses, was 75 cents, the same as in the first nine
months of last year, reflecting the dilution from the equity offering.
Excluding the dilutive effect of the offering, EPS increased 6 cents.
Operating cash flow for the first nine months increased to $77.8 million
compared with $51.8 million in the same period last year. Capital
expenditures increased to $23.8 million for the first nine months versus $18.7
million for the same period last year.
Business Segment Results
Sales within domestic distribution grew to $619.9 million in the third
quarter of 2001, representing an increase of 10.6 percent from the same period
in 2000. In the third quarter, operating income increased to $47.1 million
from $42.4 million in the corresponding period of last year. Year to date,
domestic distribution sales reached $1,795.8 million compared with $1,653.0
million for the first nine months of last year, an 8.6 percent increase.
Operating income grew in the first nine months to $128.5 million, a 10.1
percent increase over the previous year's period.
International distribution sales totaled $105.8 million in the third
quarter, a 5.5 percent increase from the same quarter last year. Excluding the
effect of foreign exchange, sales were $108.2 million, representing a 7.9
percent increase compared with sales of the corresponding quarter last year.
For the latest quarter, operating income increased to $3.1 million from $2.8
million in 2000. Sales in the first nine months increased to $320.2 million
compared with $316.4 million in the same period last year, while year-to-date
operating income increased to $9.2 million from $7.1 million in the same
period last year. Excluding foreign-exchange effects, sales were $336.8
million, representing a 6.4 percent increase over the prior year.
Third-quarter sales within the laboratory-workstations segment increased
15.2 percent to $45.6 million from $39.6 million in the prior year's third
period, while operating income was $1.8 million compared with $0.8 million in
the corresponding quarter last year. Year-to-date sales rose to $132.1
million, an 8.2 percent increase over the previous year's period. Operating
income for the nine-month period was $3.3 million compared with $2.9 million
in the prior year.
Order activity in the laboratory-workstations segment continued to be
strong in the third quarter. Backlog increased to $111 million, up 38 percent
from the corresponding period of the prior year.
Company Outlook
The demonstrated strength of Fisher's core business, the continued
increase in backlog in the laboratory-workstations segment, the completion of
the Fisher Clinical Services, MAS and SEC acquisitions and the anticipated
closing of the Cole-Parmer transaction this month reinforce the company's
confidence about its future. For 2001, the company expects annual revenue
growth of 8.5 percent to 9.5 percent, and EPS, adjusted for nonrecurring and
restructuring expenses, to be approximately $1.01 based on an estimated
weighted average of 53.3 million diluted shares outstanding. Cash EPS, which
excludes goodwill amortization, is estimated to be approximately $1.25.
Our outlook by segment for 2001 follows.
Revenue Growth Rate
(excluding foreign-exchange
Segment effects in Q4) Operating Margin
Domestic (1) 10.0% - 11.0% 7.1%
International 4.0% 3.2%
Lab Workstations 7.5% 2.7% (snip) |
