Airgas Inc. (ARG, Financial) filed Annual Report for the period ended 2010-03-31.
Airgas Inc. has a market cap of $5.15 billion; its shares were traded at around $62.23 with a P/E ratio of 23.2 and P/S ratio of 1.3. The dividend yield of Airgas Inc. stocks is 1.4%. Airgas Inc. had an annual average earning growth of 15.2% over the past 10 years. GuruFocus rated Airgas Inc. the business predictability rank of 2.5-star.ARG is in the portfolios of Daniel Loeb of Third Point, LLC, Eric Mindich of Eton Park Capital Management, L.P., Louis Moore Bacon of Moore Capital Management, LP, Columbia Wanger of Columbia Wanger Asset Management, Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC, Richard Perry of Perry Capital, Pioneer Investments, Louis Moore Bacon of Moore Capital Management, LP, Jeremy Grantham of GMO LLC, Steven Cohen of SAC Capital Advisors.
Since its inception, the Company has made approximately 400 acquisitions. During fiscal 2010, the Company acquired six businesses with aggregate historical annual sales of more than $47 million. The largest of these businesses was Tri-Tech, a Florida-based industrial gas and welding supply distributor with 16 locations throughout Florida, Georgia, and South Carolina with historical annual sales of approximately $31 million. The Company acquired these businesses in order to expand its geographic coverage and strengthen its national network of branch-store locations. The Company paid a total of $80.8 million in cash to acquire these businesses and settle holdback liabilities and contingent consideration arrangements associated with certain prior year acquisitions. See Note 3 to the Companys Consolidated Financial Statements under Item 8, Financial Statements and Supplementary Data, for a description of current and prior year acquisition activity.
The Companys internal atmospheric gas production capacity includes 16 air separation plants that produce oxygen, nitrogen and argon, making Airgas the fifth largest producer of atmospheric gases in North America. In addition, the Company purchases industrial, medical and specialty gases pursuant to contracts with national and regional producers of industrial gases. The Company is party to a long-term take-or-pay supply agreement in effect through August 2017, under which Air Products and Chemicals, Inc. (Air Products) will supply the Company with bulk nitrogen, oxygen, argon, helium and hydrogen. The Company is committed to purchase approximately $55 million annually in bulk gases under the Air Products supply agreements. The Company also has long-term take-or-pay supply agreements with The Linde Group, AG (Linde AG) to purchase oxygen, nitrogen, argon, helium and acetylene. The agreements expire at various dates through July 2019 and represent almost $55 million in annual bulk gas purchases. Additionally, the Company has long-term take-or-pay supply agreements to purchase oxygen, nitrogen, argon and helium from other major producers. The agreements expire at various dates through 2024, and annual purchases under these contracts are approximately $20 million. The annual purchase commitments above reflect estimates based on fiscal 2010 purchases.
The Company has established insurance programs to cover workers compensation, business automobile and general liability claims. During fiscal 2010, 2009 and 2008, these programs had high deductible limits of $1 million per occurrence. For fiscal 2011, the high deductible limits will remain $1 million per occurrence. The Company accrues estimated losses using actuarial methods and assumptions based on the Companys historical loss experience.
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Airgas Inc. has a market cap of $5.15 billion; its shares were traded at around $62.23 with a P/E ratio of 23.2 and P/S ratio of 1.3. The dividend yield of Airgas Inc. stocks is 1.4%. Airgas Inc. had an annual average earning growth of 15.2% over the past 10 years. GuruFocus rated Airgas Inc. the business predictability rank of 2.5-star.ARG is in the portfolios of Daniel Loeb of Third Point, LLC, Eric Mindich of Eton Park Capital Management, L.P., Louis Moore Bacon of Moore Capital Management, LP, Columbia Wanger of Columbia Wanger Asset Management, Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC, Richard Perry of Perry Capital, Pioneer Investments, Louis Moore Bacon of Moore Capital Management, LP, Jeremy Grantham of GMO LLC, Steven Cohen of SAC Capital Advisors.
Highlight of Business Operations:
The Companys consolidated sales were $3.86 billion, $4.35 billion and $4.02 billion in the fiscal years ended March 31, 2010, 2009 and 2008, respectively. The Companys operations are predominantly in the United States. However, the Company does conduct operations outside of the United States, principally in Canada and, to a lesser extent, Mexico, Russia, Dubai and Europe. Revenues derived from foreign countries are based on the point of sale and were $77 million, $86 million and $63 million in the fiscal years ended March 31, 2010, 2009 and 2008, respectively. Long-lived assets attributable to the Companys foreign operations represent less than 4.0% of the consolidated total long-lived assets of the Company and were $141 million, $116 million and $74 million at March 31, 2010, 2009 and 2008, respectively.Since its inception, the Company has made approximately 400 acquisitions. During fiscal 2010, the Company acquired six businesses with aggregate historical annual sales of more than $47 million. The largest of these businesses was Tri-Tech, a Florida-based industrial gas and welding supply distributor with 16 locations throughout Florida, Georgia, and South Carolina with historical annual sales of approximately $31 million. The Company acquired these businesses in order to expand its geographic coverage and strengthen its national network of branch-store locations. The Company paid a total of $80.8 million in cash to acquire these businesses and settle holdback liabilities and contingent consideration arrangements associated with certain prior year acquisitions. See Note 3 to the Companys Consolidated Financial Statements under Item 8, Financial Statements and Supplementary Data, for a description of current and prior year acquisition activity.
The Companys internal atmospheric gas production capacity includes 16 air separation plants that produce oxygen, nitrogen and argon, making Airgas the fifth largest producer of atmospheric gases in North America. In addition, the Company purchases industrial, medical and specialty gases pursuant to contracts with national and regional producers of industrial gases. The Company is party to a long-term take-or-pay supply agreement in effect through August 2017, under which Air Products and Chemicals, Inc. (Air Products) will supply the Company with bulk nitrogen, oxygen, argon, helium and hydrogen. The Company is committed to purchase approximately $55 million annually in bulk gases under the Air Products supply agreements. The Company also has long-term take-or-pay supply agreements with The Linde Group, AG (Linde AG) to purchase oxygen, nitrogen, argon, helium and acetylene. The agreements expire at various dates through July 2019 and represent almost $55 million in annual bulk gas purchases. Additionally, the Company has long-term take-or-pay supply agreements to purchase oxygen, nitrogen, argon and helium from other major producers. The agreements expire at various dates through 2024, and annual purchases under these contracts are approximately $20 million. The annual purchase commitments above reflect estimates based on fiscal 2010 purchases.
The Company has established insurance programs to cover workers compensation, business automobile and general liability claims. During fiscal 2010, 2009 and 2008, these programs had high deductible limits of $1 million per occurrence. For fiscal 2011, the high deductible limits will remain $1 million per occurrence. The Company accrues estimated losses using actuarial methods and assumptions based on the Companys historical loss experience.
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