Apogent Technologies Inc. Announces Second Quarter Results

Apr 23, 2001, 01:00 ET from Apogent Technologies

    PORTSMOUTH, NH, April 23 /PRNewswire Interactive News Release/ --
 Apogent Technologies (NYSE:   AOT), a leading manufacturer of laboratory and
 life science products, announced today its financial results for the second
 quarter of fiscal 2001, the three months ended March 31, 2001.
 
     SECOND QUARTER AND FIRST HALF RESULTS
 
     Net sales for the second fiscal quarter were $245.1 million, an increase
 of $27.0 million or 12.4% over the second quarter of fiscal 2000.  Excluding
 the unfavorable impact of foreign currency translation of approximately
 $2.4 million, reported net sales would have increased $29.5 million or
 13.5% for the second quarter.  For the first half of this fiscal year, sales
 at actual currency rates were $465.9 million, an increase of 10.1% over last
 year.
     Income from continuing operations was $30.2 million for the quarter versus
 comparable income of $25.3 million for the second quarter last year, an
 increase of $4.9 million or 19.1%.  Included in income from continuing
 operations this quarter was a gain on sale of a corporate aircraft of
 approximately $2.5 million net of tax.  Excluding this sale transaction,
 income from continuing operations would have been approximately $27.7 million
 for the quarter, an increase of $2.4 million or 9.5%.  For the first six
 months, income from continuing operations was $52.4 million, an increase of
 14.4% over the comparable six month period last year.
     Diluted earnings per share from continuing operations for the quarter were
 28 cents versus 24 cents for the second quarter of last year.  Diluted
 earnings per share, calculated before the impact of the gain on sale of
 aircraft transaction, would have been 25 cents.  The company reported a loss
 from discontinued operations of $838 thousand, net of tax, related to the
 spin-off of Sybron Dental Specialties, which was completed on
 December 11, 2000.  Net income for the quarter was $29.4 million and diluted
 net earnings per share were 27 cents.
     "I am very pleased with Apogent's performance in this second quarter which
 tracked well with the company's guidance.  In particular, overall, internal
 revenue growth was 5% -- a significant increase over the prior three-quarters
 and higher than our expectations.  We continue to expect favorable internal
 growth rates of approximately 9% and 7% in the next two quarters.  This is
 consistent with our objective of achieving 6% to 7% overall internal sales
 growth for the year," said Apogent's Chief Executive Officer, Frank Jellinek,
 Jr.  "Again, I am pleased to report that the acquisition pipeline is healthy
 as we closed BioRobotics this quarter and closed two transactions in the
 opening two weeks of our third quarter.  Reaffirming our discussion in the
 November 8, 2000 press release, we continue to expect diluted earnings per
 share from continuing operations to be as follows:
 
     Quarter 3   26 cents
     Quarter 4   27 cents
     Year        $1.00
 
     SALES DATA
 
     Quarterly comparisons of net sales revenue by line of business are as
     follows:
 
                                    Quarter Ended 3/31/01
 
     (in 000's)
                                     2001       2000     Growth at     Growth
                                                       Actual Rates  FX Neutral
     Clinical and Industrial      $61,767    $54,666           13.0%      14.0%
 
     Diagnostics and Microbiology  59,806     53,179           12.5%      12.7%
 
     Laboratory Equipment          25,878     24,645            5.0%       5.6%
 
     Labware and Life Sciences     97,653     85,584           14.1%      16.2%
 
       TOTAL                     $245,104   $218,074           12.4%      13.6%
 
     Quarterly comparisons of geographic net sales revenue are as follows:
 
                                              Quarter Ended 3/31/01
 
     (in 000's)
                                     2001            2000       Growth at
                                                              Actual Rates
     United States                  $180,330        $162,499         11.0%
     Europe                           40,624          33,691         20.6%
     Japan                             9,424           8,586          9.8%
     Other                            14,726          13,298         10.7%
 
      TOTAL                         $245,104        $218,074         12.4%
 
     MARGINS AND CASH FLOW
 
     Gross margin for the quarter was 49.2% versus 49.1% in the second quarter
 of last year.  Sequentially, gross margin of 49.2% in the second quarter
 compares favorably with the 48% reported last quarter.  The improvement,
 sequentially, was primarily due to favorable gross margin variance at acquired
 businesses, continued strength in sales of new products, and the impact of
 calendar year price increases.  For the year, we continue to expect gross
 margin in the 48% to 49% range, similar to last year.
     Operating income, before restructuring charges of $583 thousand, was
 $57.3 million -- $4.3 million or 8.1% higher than last year.  These charges
 related to additional severance costs from the closure of the corporate office
 in Milwaukee.  Discretionary commercial expense for sales, marketing,
 administration, and product development was $52.8 million or 21.5% of revenue
 for the quarter.  For the comparable period last year, discretionary
 commercial expense was $47.1 million or 21.6% of revenue.  The second quarter
 of this year included $2.1 million of additional amortization from
 acquisitions and an unfavorable overhead variance due to the maintenance of
 corporate staff in both Milwaukee and Portsmouth.  Operating income for the
 first six months, before restructuring charges, was $107.1 million or 23.0% of
 sales, an increase of $8.0 million or 8.1% over the comparable period in the
 prior year.
     Earnings before interest, taxes, depreciation and amortization (EBITDA)
 was $80.8 million for the quarter, an increase of $12.1 million or 17.7% over
 the second quarter of last year.  EBITDA for the quarter, as a percentage of
 sales, was 33.0% versus 31.5% for last year.  Before the $4.1 million gain
 from the asset sale, EBITDA for the second quarter would have been
 $76.7 million, an increase of $8.0 million or 11.6%.  EBITDA as a percentage
 of sales calculated before the asset sale would have been 31.3%.  EBITDA for
 the first six months of this fiscal year was $149.0 million versus
 $130.3 million in the first six months of last fiscal year, and increase of
 14.6%.
     Capital spending for the quarter was $16.8 million versus $10.4 million in
 the comparable period last year.  Included in this total for the second
 quarter was $5.2 million for the purchase of a more economical corporate
 aircraft.  Capital spending, calculated before the aircraft purchase, would
 have been $11.6 million versus $10.4 million in the prior year's second
 quarter.  For the current fiscal year, capital spending is expected to be in
 the range of 4% to 5% of sales.
     Depreciation and amortization were $8.0 million and $10.6 million,
 respectively, for the quarter versus $6.8 million and $8.7 million,
 respectively, for the comparable quarter last year.
     Accounts receivable were $177.8 million and inventory was $156.1 million
 at the end of the quarter.  Days sales outstanding were 61 days compared with
 68 days at the end of December and 64 days for the comparable quarter last
 year.  Inventory turnover was 2.7 times, which was unchanged from December and
 the comparable period last year.
     As of March 31, 2001, Apogent had $ 594 million of long-term debt
 obligations composed as follows:
 
     Term Loan                 $300 million
     Revolving Line of Credit  $257 million
     Sale/Leaseback            $ 12 million
     Capital Leases and Other  $ 25 million
     Total Long Term Debt      $594 million
 
     On April 4, 2001, we announced the completion of a debut $325 million
 senior notes offering in a private placement with registration rights.  The
 notes have a maturity of 10 years and an 8% coupon rate.  We used the proceeds
 to repay its term loan and a portion of its revolving line of credit, thereby
 diversifying its funding sources with a long-term, fixed rate component.
 
     DISCONTINUED OPERATIONS
 
     On December 11, 2000, the Company announced that it had completed the
 distribution, or spin-off, to its shareholders of the common stock and related
 preferred stock purchase rights of Sybron Dental Specialties, Inc.  During
 this second quarter, the Company posted a loss from discontinued operations of
 $838 thousand net of tax.  This loss was composed of transaction expenses
 related to the spin-off of Sybron Dental Specialties.
 
     ACQUISITIONS
 
     On March 1, 2001, Apogent Technologies announced the acquisition of
 BioRobotics Group Limited in Haslingfield, England.  BioRobotics is a leading
 manufacturer of automated instrumentation solutions used in functional
 genomics.  Net sales for BioRobotics are expected to be approximately
 $19 million in its first twelve months under Apogent ownership.
     On April 10, 2001, Apogent Technologies announced the acquisition of
 Advanced Biotechnologies Limited (ABgene) in Epsom, England.  ABgene is a
 marquee manufacturer of molecular biology reagents and special plastic
 consumables for the life sciences marketplace.  The firm's products are used
 in genomics, proteomics, and high throughput screening for pharmaceutical drug
 discovery.  ABgene's sales for the year just ended were approximately
 $21 million, with an anticipated growth rate in excess of 20% for the next few
 years.
     Also on April 10, 2001, Apogent Technologies announced the acquisition of
 the disposable culture tube (DCT) business of Kimble Glass Inc.  Disposable
 culture tubes are used in a variety of general laboratory applications,
 particularly in blood collection, blood banking, urinalysis, and certain cell
 culture procedures.  Apogent expects first year sales of this DCT line to be
 approximately $5.0 to $6.0 million.
 
     UPCOMING EVENTS
 
     On Tuesday, April 24, 2001 at 11 A.M. EDT, Apogent will host a conference
 call to discuss its second fiscal quarter financial results for the period
 ended March 31, 2001.  The dial-in numbers for the teleconference will be:
     Domestic Callers (800) 582-6982
 
     International Callers (212) 748-2711
 
     The conference call will also be simultaneously audio webcast on Apogent's
 website in the Investor Relations section at www.apogent.com .  An archive of
 the webcast will be available on Apogent's website until May 23, 2001.
     On Tuesday, May 15, 2001, Apogent management will be presenting at the
 Robert W. Baird Growth Stock Conference at 1:35 PM CDT at the Four Seasons
 Hotel in Chicago, Illinois.
     Apogent management will be presenting at the Goldman, Sachs & Company
 Healthcare Conference, which will take place June 11-14, 2001 at the
 Ritz-Carlton in Laguna Niguel, California.
     For further information on upcoming investor events, including copies of
 the written presentation materials from investor conferences, please visit the
 Investor Relations section of Apogent's website at www.apogent.com .
 
     BUSINESS DESCRIPTION
 
     Apogent Technologies' subsidiaries design, manufacture and market
 value-added laboratory and life science products for the clinical, research
 and industrial markets, worldwide.  The Company's lines of business include
 Labware and Life Sciences, Diagnostics and Microbiology, Clinical and
 Industrial, and Laboratory Equipment.  Apogent's broad array of industry
 leading products includes Nalge Nunc International reusable and disposable
 multi-well plates and plastic labware; Microgenics drug testing products;
 Applied Biotech rapid diagnostic tests; Erie Scientific coated and printed
 glass for clinical diagnostics and microarray applications; Richard-Allan
 Scientific histology and immunohistochemistry consumables and equipment; and
 Barnstead Thermolyne laboratory equipment and water systems.
 
     NOTE REGARDING FORWARD-LOOKING STATEMENTS
 
     This press release contains forward-looking statements as defined under
 Federal securities laws, including statements concerning the Company's
 strategic and financial goals and market growth that involve risks and
 uncertainties.  These and other statements that relate to future results and
 events are based on the Company's current expectations.  Actual results may
 differ materially from those presently anticipated.  Factors that could cause
 actual results to differ materially include the "Cautionary Factors" contained
 in the Company's Form 10-K filed with the Securities and Exchange Commission
 for the fiscal year ended September 30, 2000 and its subsequent report(s) on
 Form 10-Q.  We undertake no obligation to publicly update any forward-looking
 statement, whether as a result of new information, future events or otherwise.
 
     The Company's financial results are summarized below: (all amounts stated
 in thousands except per share data in cents)
 
 
                                        Fiscal Second Quarter Ending March 31
 
                                        2001            2000      % Change
     Net sales                      $245,104        $218,074          12.4
     Gross profit                    120,513         107,165          12.5
     Selling, general &
      administrative                  63,844          54,204          17.8
     Operating income                 56,669          52,961           7.0
 
     Income before income taxes,
      discontinued operations and
        extraordinary items           50,317          41,238          22.0
     Income taxes                     20,127          15,898          26.6
     Income from continuing
      operations before
       extraordinary items            30,190          25,340          19.1
     Discontinued operations            (838)         13,635            NM
 
     Net income                       29,352          38,975         (24.7)
 
     Basic earnings per common share
      from continuing operations       $0.29           $0.24          20.8
     Discontinued operations           (0.01)           0.13            NM
     Basic earnings per common share    0.28            0.37         (24.3)
 
     Diluted earnings per common share
      from continuing operations        0.28            0.24          16.7
     Discontinued operations           (0.01)           0.13            NM
     Diluted earnings per common share  0.27            0.37         (27.0)
 
     Average basic shares
      outstanding                    105,371         104,234           1.1
     Average diluted shares
      outstanding                    107,480         106,646            .8
 
     NM - Not meaningful
 
                                       Fiscal Year-to-Date Ending March 31
 
                                        2001            2000        % Change
     Net sales                      $465,862        $422,957          10.1
     Gross profit                    226,466         207,256           9.3
     Selling, general &
      administrative                 119,960         108,204          10.9
     Operating income                106,506          99,052           7.5
 
     Income before income taxes,
      discontinued operations and
       extraordinary items            87,295          75,063          16.3
     Income taxes                     34,918          29,262          19.3
     Income from continuing
      operations before
       extraordinary items            52,377          45,801          14.4
     Discontinued operations         (11,824)         23,598            NM
     Income before extraordinary
      items
                                     40,553           69,399         (41.6)
     Extraordinary items               (745)              --            NM
 
     Net income                       39,808          69,399         (42.6)
 
     Basic earnings per common share
      from continuing operations       $0.50           $0.44          13.6
     Discontinued operations           (0.11)           0.23            NM
     Extraordinary items               (0.01)             --            NM
     Basic earnings per common share    0.38            0.67         (43.3)
 
     Diluted earnings per common share
       from continuing operations       0.49            0.43          14.0
     Discontinued operations           (0.11)           0.22            NM
     Extraordinary items               (0.01)             --            NM
     Diluted earnings per common
      share                             0.37            0.65         (43.1)
 
 
     Average basic shares
      outstanding                    105,332         104,130           1.2
     Average diluted shares
      outstanding                    107,558         106,488           1.0
 
     NM - Not meaningful
 
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SOURCE Apogent Technologies
    PORTSMOUTH, NH, April 23 /PRNewswire Interactive News Release/ --
 Apogent Technologies (NYSE:   AOT), a leading manufacturer of laboratory and
 life science products, announced today its financial results for the second
 quarter of fiscal 2001, the three months ended March 31, 2001.
 
     SECOND QUARTER AND FIRST HALF RESULTS
 
     Net sales for the second fiscal quarter were $245.1 million, an increase
 of $27.0 million or 12.4% over the second quarter of fiscal 2000.  Excluding
 the unfavorable impact of foreign currency translation of approximately
 $2.4 million, reported net sales would have increased $29.5 million or
 13.5% for the second quarter.  For the first half of this fiscal year, sales
 at actual currency rates were $465.9 million, an increase of 10.1% over last
 year.
     Income from continuing operations was $30.2 million for the quarter versus
 comparable income of $25.3 million for the second quarter last year, an
 increase of $4.9 million or 19.1%.  Included in income from continuing
 operations this quarter was a gain on sale of a corporate aircraft of
 approximately $2.5 million net of tax.  Excluding this sale transaction,
 income from continuing operations would have been approximately $27.7 million
 for the quarter, an increase of $2.4 million or 9.5%.  For the first six
 months, income from continuing operations was $52.4 million, an increase of
 14.4% over the comparable six month period last year.
     Diluted earnings per share from continuing operations for the quarter were
 28 cents versus 24 cents for the second quarter of last year.  Diluted
 earnings per share, calculated before the impact of the gain on sale of
 aircraft transaction, would have been 25 cents.  The company reported a loss
 from discontinued operations of $838 thousand, net of tax, related to the
 spin-off of Sybron Dental Specialties, which was completed on
 December 11, 2000.  Net income for the quarter was $29.4 million and diluted
 net earnings per share were 27 cents.
     "I am very pleased with Apogent's performance in this second quarter which
 tracked well with the company's guidance.  In particular, overall, internal
 revenue growth was 5% -- a significant increase over the prior three-quarters
 and higher than our expectations.  We continue to expect favorable internal
 growth rates of approximately 9% and 7% in the next two quarters.  This is
 consistent with our objective of achieving 6% to 7% overall internal sales
 growth for the year," said Apogent's Chief Executive Officer, Frank Jellinek,
 Jr.  "Again, I am pleased to report that the acquisition pipeline is healthy
 as we closed BioRobotics this quarter and closed two transactions in the
 opening two weeks of our third quarter.  Reaffirming our discussion in the
 November 8, 2000 press release, we continue to expect diluted earnings per
 share from continuing operations to be as follows:
 
     Quarter 3   26 cents
     Quarter 4   27 cents
     Year        $1.00
 
     SALES DATA
 
     Quarterly comparisons of net sales revenue by line of business are as
     follows:
 
                                    Quarter Ended 3/31/01
 
     (in 000's)
                                     2001       2000     Growth at     Growth
                                                       Actual Rates  FX Neutral
     Clinical and Industrial      $61,767    $54,666           13.0%      14.0%
 
     Diagnostics and Microbiology  59,806     53,179           12.5%      12.7%
 
     Laboratory Equipment          25,878     24,645            5.0%       5.6%
 
     Labware and Life Sciences     97,653     85,584           14.1%      16.2%
 
       TOTAL                     $245,104   $218,074           12.4%      13.6%
 
     Quarterly comparisons of geographic net sales revenue are as follows:
 
                                              Quarter Ended 3/31/01
 
     (in 000's)
                                     2001            2000       Growth at
                                                              Actual Rates
     United States                  $180,330        $162,499         11.0%
     Europe                           40,624          33,691         20.6%
     Japan                             9,424           8,586          9.8%
     Other                            14,726          13,298         10.7%
 
      TOTAL                         $245,104        $218,074         12.4%
 
     MARGINS AND CASH FLOW
 
     Gross margin for the quarter was 49.2% versus 49.1% in the second quarter
 of last year.  Sequentially, gross margin of 49.2% in the second quarter
 compares favorably with the 48% reported last quarter.  The improvement,
 sequentially, was primarily due to favorable gross margin variance at acquired
 businesses, continued strength in sales of new products, and the impact of
 calendar year price increases.  For the year, we continue to expect gross
 margin in the 48% to 49% range, similar to last year.
     Operating income, before restructuring charges of $583 thousand, was
 $57.3 million -- $4.3 million or 8.1% higher than last year.  These charges
 related to additional severance costs from the closure of the corporate office
 in Milwaukee.  Discretionary commercial expense for sales, marketing,
 administration, and product development was $52.8 million or 21.5% of revenue
 for the quarter.  For the comparable period last year, discretionary
 commercial expense was $47.1 million or 21.6% of revenue.  The second quarter
 of this year included $2.1 million of additional amortization from
 acquisitions and an unfavorable overhead variance due to the maintenance of
 corporate staff in both Milwaukee and Portsmouth.  Operating income for the
 first six months, before restructuring charges, was $107.1 million or 23.0% of
 sales, an increase of $8.0 million or 8.1% over the comparable period in the
 prior year.
     Earnings before interest, taxes, depreciation and amortization (EBITDA)
 was $80.8 million for the quarter, an increase of $12.1 million or 17.7% over
 the second quarter of last year.  EBITDA for the quarter, as a percentage of
 sales, was 33.0% versus 31.5% for last year.  Before the $4.1 million gain
 from the asset sale, EBITDA for the second quarter would have been
 $76.7 million, an increase of $8.0 million or 11.6%.  EBITDA as a percentage
 of sales calculated before the asset sale would have been 31.3%.  EBITDA for
 the first six months of this fiscal year was $149.0 million versus
 $130.3 million in the first six months of last fiscal year, and increase of
 14.6%.
     Capital spending for the quarter was $16.8 million versus $10.4 million in
 the comparable period last year.  Included in this total for the second
 quarter was $5.2 million for the purchase of a more economical corporate
 aircraft.  Capital spending, calculated before the aircraft purchase, would
 have been $11.6 million versus $10.4 million in the prior year's second
 quarter.  For the current fiscal year, capital spending is expected to be in
 the range of 4% to 5% of sales.
     Depreciation and amortization were $8.0 million and $10.6 million,
 respectively, for the quarter versus $6.8 million and $8.7 million,
 respectively, for the comparable quarter last year.
     Accounts receivable were $177.8 million and inventory was $156.1 million
 at the end of the quarter.  Days sales outstanding were 61 days compared with
 68 days at the end of December and 64 days for the comparable quarter last
 year.  Inventory turnover was 2.7 times, which was unchanged from December and
 the comparable period last year.
     As of March 31, 2001, Apogent had $ 594 million of long-term debt
 obligations composed as follows:
 
     Term Loan                 $300 million
     Revolving Line of Credit  $257 million
     Sale/Leaseback            $ 12 million
     Capital Leases and Other  $ 25 million
     Total Long Term Debt      $594 million
 
     On April 4, 2001, we announced the completion of a debut $325 million
 senior notes offering in a private placement with registration rights.  The
 notes have a maturity of 10 years and an 8% coupon rate.  We used the proceeds
 to repay its term loan and a portion of its revolving line of credit, thereby
 diversifying its funding sources with a long-term, fixed rate component.
 
     DISCONTINUED OPERATIONS
 
     On December 11, 2000, the Company announced that it had completed the
 distribution, or spin-off, to its shareholders of the common stock and related
 preferred stock purchase rights of Sybron Dental Specialties, Inc.  During
 this second quarter, the Company posted a loss from discontinued operations of
 $838 thousand net of tax.  This loss was composed of transaction expenses
 related to the spin-off of Sybron Dental Specialties.
 
     ACQUISITIONS
 
     On March 1, 2001, Apogent Technologies announced the acquisition of
 BioRobotics Group Limited in Haslingfield, England.  BioRobotics is a leading
 manufacturer of automated instrumentation solutions used in functional
 genomics.  Net sales for BioRobotics are expected to be approximately
 $19 million in its first twelve months under Apogent ownership.
     On April 10, 2001, Apogent Technologies announced the acquisition of
 Advanced Biotechnologies Limited (ABgene) in Epsom, England.  ABgene is a
 marquee manufacturer of molecular biology reagents and special plastic
 consumables for the life sciences marketplace.  The firm's products are used
 in genomics, proteomics, and high throughput screening for pharmaceutical drug
 discovery.  ABgene's sales for the year just ended were approximately
 $21 million, with an anticipated growth rate in excess of 20% for the next few
 years.
     Also on April 10, 2001, Apogent Technologies announced the acquisition of
 the disposable culture tube (DCT) business of Kimble Glass Inc.  Disposable
 culture tubes are used in a variety of general laboratory applications,
 particularly in blood collection, blood banking, urinalysis, and certain cell
 culture procedures.  Apogent expects first year sales of this DCT line to be
 approximately $5.0 to $6.0 million.
 
     UPCOMING EVENTS
 
     On Tuesday, April 24, 2001 at 11 A.M. EDT, Apogent will host a conference
 call to discuss its second fiscal quarter financial results for the period
 ended March 31, 2001.  The dial-in numbers for the teleconference will be:
     Domestic Callers (800) 582-6982
 
     International Callers (212) 748-2711
 
     The conference call will also be simultaneously audio webcast on Apogent's
 website in the Investor Relations section at www.apogent.com .  An archive of
 the webcast will be available on Apogent's website until May 23, 2001.
     On Tuesday, May 15, 2001, Apogent management will be presenting at the
 Robert W. Baird Growth Stock Conference at 1:35 PM CDT at the Four Seasons
 Hotel in Chicago, Illinois.
     Apogent management will be presenting at the Goldman, Sachs & Company
 Healthcare Conference, which will take place June 11-14, 2001 at the
 Ritz-Carlton in Laguna Niguel, California.
     For further information on upcoming investor events, including copies of
 the written presentation materials from investor conferences, please visit the
 Investor Relations section of Apogent's website at www.apogent.com .
 
     BUSINESS DESCRIPTION
 
     Apogent Technologies' subsidiaries design, manufacture and market
 value-added laboratory and life science products for the clinical, research
 and industrial markets, worldwide.  The Company's lines of business include
 Labware and Life Sciences, Diagnostics and Microbiology, Clinical and
 Industrial, and Laboratory Equipment.  Apogent's broad array of industry
 leading products includes Nalge Nunc International reusable and disposable
 multi-well plates and plastic labware; Microgenics drug testing products;
 Applied Biotech rapid diagnostic tests; Erie Scientific coated and printed
 glass for clinical diagnostics and microarray applications; Richard-Allan
 Scientific histology and immunohistochemistry consumables and equipment; and
 Barnstead Thermolyne laboratory equipment and water systems.
 
     NOTE REGARDING FORWARD-LOOKING STATEMENTS
 
     This press release contains forward-looking statements as defined under
 Federal securities laws, including statements concerning the Company's
 strategic and financial goals and market growth that involve risks and
 uncertainties.  These and other statements that relate to future results and
 events are based on the Company's current expectations.  Actual results may
 differ materially from those presently anticipated.  Factors that could cause
 actual results to differ materially include the "Cautionary Factors" contained
 in the Company's Form 10-K filed with the Securities and Exchange Commission
 for the fiscal year ended September 30, 2000 and its subsequent report(s) on
 Form 10-Q.  We undertake no obligation to publicly update any forward-looking
 statement, whether as a result of new information, future events or otherwise.
 
     The Company's financial results are summarized below: (all amounts stated
 in thousands except per share data in cents)
 
 
                                        Fiscal Second Quarter Ending March 31
 
                                        2001            2000      % Change
     Net sales                      $245,104        $218,074          12.4
     Gross profit                    120,513         107,165          12.5
     Selling, general &
      administrative                  63,844          54,204          17.8
     Operating income                 56,669          52,961           7.0
 
     Income before income taxes,
      discontinued operations and
        extraordinary items           50,317          41,238          22.0
     Income taxes                     20,127          15,898          26.6
     Income from continuing
      operations before
       extraordinary items            30,190          25,340          19.1
     Discontinued operations            (838)         13,635            NM
 
     Net income                       29,352          38,975         (24.7)
 
     Basic earnings per common share
      from continuing operations       $0.29           $0.24          20.8
     Discontinued operations           (0.01)           0.13            NM
     Basic earnings per common share    0.28            0.37         (24.3)
 
     Diluted earnings per common share
      from continuing operations        0.28            0.24          16.7
     Discontinued operations           (0.01)           0.13            NM
     Diluted earnings per common share  0.27            0.37         (27.0)
 
     Average basic shares
      outstanding                    105,371         104,234           1.1
     Average diluted shares
      outstanding                    107,480         106,646            .8
 
     NM - Not meaningful
 
                                       Fiscal Year-to-Date Ending March 31
 
                                        2001            2000        % Change
     Net sales                      $465,862        $422,957          10.1
     Gross profit                    226,466         207,256           9.3
     Selling, general &
      administrative                 119,960         108,204          10.9
     Operating income                106,506          99,052           7.5
 
     Income before income taxes,
      discontinued operations and
       extraordinary items            87,295          75,063          16.3
     Income taxes                     34,918          29,262          19.3
     Income from continuing
      operations before
       extraordinary items            52,377          45,801          14.4
     Discontinued operations         (11,824)         23,598            NM
     Income before extraordinary
      items
                                     40,553           69,399         (41.6)
     Extraordinary items               (745)              --            NM
 
     Net income                       39,808          69,399         (42.6)
 
     Basic earnings per common share
      from continuing operations       $0.50           $0.44          13.6
     Discontinued operations           (0.11)           0.23            NM
     Extraordinary items               (0.01)             --            NM
     Basic earnings per common share    0.38            0.67         (43.3)
 
     Diluted earnings per common share
       from continuing operations       0.49            0.43          14.0
     Discontinued operations           (0.11)           0.22            NM
     Extraordinary items               (0.01)             --            NM
     Diluted earnings per common
      share                             0.37            0.65         (43.1)
 
 
     Average basic shares
      outstanding                    105,332         104,130           1.2
     Average diluted shares
      outstanding                    107,558         106,488           1.0
 
     NM - Not meaningful
 
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 SOURCE  Apogent Technologies