Fisher Scientific Reports Record First-Quarter Sales EPS Rises 10.5% to 21 Cents Before Special Items

Apr 26, 2001, 01:00 ET from Fisher Scientific International Inc.

    HAMPTON, N.H., April 26 /PRNewswire/ -- Fisher Scientific International
 Inc. (NYSE:   FSH), a world leader in serving science, today announced record
 first-quarter sales for the three-month period ended March 31, 2001,
 reflecting strong performance in the company's domestic and international
 distribution operations.
     Sales for the first quarter totaled $687.0 million, a 5.2% increase,
 compared with $653.2 million for the same period last year. Excluding the
 impact of foreign exchange, sales increased to $695.8 million for the current
 quarter, a 6.5% increase compared with the prior year's quarter. Operating
 income, excluding $52.7 million of nonrecurring expenses ($33.2 million after
 tax), totaled $42.7 million for the first quarter, compared with $39.4 million
 during the same quarter last year. The company recorded a net loss of $23.7
 million for the first quarter. Excluding nonrecurring expenses, net income
 totaled $9.5 million compared with $8.5 million in the corresponding quarter
 of last year.
     Earnings before interest, taxes and depreciation (EBITDA) totaled $58.7
 million excluding nonrecurring expenses, compared with $55.6 million in the
 first quarter of last year. Diluted earnings per share (EPS) totaled $(0.59)
 for the first quarter. Excluding nonrecurring expenses, EPS increased to $0.21
 for the first quarter, compared with $0.19 for the same period last year. EPS,
 excluding nonrecurring expenses and goodwill amortization, increased to $0.28
 for the first quarter, compared with $0.25 for the corresponding period last
 year.
     "Fisher's record first-quarter sales continue to benefit from favorable
 market dynamics including increased scientific research and development and
 healthcare-related spending," said Paul M. Montrone, chairman and chief
 executive officer of Fisher Scientific International.
 
     Special Items
     In the first quarter, the company recorded $52.7 million of restructuring
 and other nonrecurring charges, which includes $19.2 million related to a
 streamlining and consolidation program, resulting in a reduction of its
 workforce by approximately 5%. In addition, the company converted certain
 employee stock options into shares of common stock, which resulted in a non-
 cash compensation charge of $33.5 million.
     During the first quarter, Fisher completed its acquisition of Covance's
 CPPS division, which offers specialized services to customers engaged in
 phases III and IV of clinical drug trials. The acquired business, renamed
 Fisher Clinical Services, enhances Fisher's position in the pharmaceutical and
 biotech markets. The results of this business are included in the company's
 domestic-distribution segment.
 
     Business Segment Results
     Sales within domestic distribution grew to $573.5 million in the first
 quarter of 2001, an increase of 6.8% from the same period in 2000. In the
 first quarter, operating income, excluding $1.1 million of nonrecurring
 expenses related to the restructuring plan, increased to $38.3 million from
 $36.6 million in the corresponding period last year.
     International distribution sales totaled $110.6 million in the first
 quarter, a 2.9% decline from the same quarter last year. Excluding the impact
 of foreign exchange, sales increased to $118.5 million, representing a 4.0%
 increase compared with the corresponding quarter last year. For the first
 quarter, operating income increased to $3.9 million from $2.6 million in 2000.
     Sales within the laboratory-workstations segment increased 9.1% from the
 year-ago period to $41.8 million and operating income remained constant at
 $0.5 million. Order activity in the laboratory-workstations segment improved
 in the first quarter following a slow down in the latter half of 2000 in the
 industrial-research market.
 
     About Fisher Scientific International Inc.
     As a world leader in serving science, Fisher Scientific International Inc.
 (NYSE:   FSH) offers more than 600,000 products and services that enable
 scientific discovery and clinical laboratory testing services to more than
 350,000 customers located in approximately 145 countries. As a result of its
 broad product offering, integrated global logistics network and electronic-
 commerce capabilities, 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 life science, clinical laboratory and industrial-safety
 supply.
 
     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)
 
 
 
                                                        Three Months Ended
                                                             March 31,
 
                                                      2001              2000
 
     Sales                                           $687.0            $653.2
 
     Cost of sales                                    512.6             488.4
 
     Selling, general and administrative
      expense                                         132.8             125.4
 
     Restructuring and other charges                   51.6               -
 
     Income (loss) from operations                    (10.0)             39.4
 
     Interest and other expense, net                   26.9              24.0
 
     Income (loss) before income taxes                (36.9)             15.4
 
     Income tax provision (benefit)                   (13.2)              6.9
 
     Net income (loss)                               $(23.7)             $8.5
 
     Net income (loss) per common share:
 
            Basic                                    $(0.59)            $0.21
            Diluted                                  $(0.59)            $0.19
 
     Weighted average common shares
      outstanding:
 
            Basic                                      40.1              40.1
            Diluted                                    40.1              44.7
 
 
     Supplementary Information:
     The following amounts exclude
      restructuring and other one-time
      charges
 
     Income from operations                           $42.7             $39.4
 
     Net income                                        $9.5              $8.5
 
     Diluted net income per common share              $0.21             $0.19
 
 
                        Fisher Scientific International Inc.
                                   Balance Sheet
                                   (in millions)
 
                                                    March 31,      December 31,
                                                      2001               2000
     ASSETS
 
     Current assets:
       Cash and cash equivalents                      $45.2              $66.0
       Receivables, net                               178.6              296.8
       Inventories                                    233.4              224.2
       Other current assets                            65.0               63.6
         Total current assets                         522.2              650.6
 
     Property, plant and equipment                    294.0              251.3
     Goodwill                                         393.9              334.2
     Other assets                                     188.8              149.6
         Total assets                              $1,398.9           $1,385.7
 
     LIABILITIES AND STOCKHOLDERS'
      DEFICIT
 
     Current liabilities:
       Short-term debt                                $50.0              $47.6
       Accounts payable                               317.7              308.5
       Accrued and other current
        liabilities                                   165.4              151.7
         Total current liabilities                    533.1              507.8
 
     Long-term debt                                   987.4              991.1
     Other liabilities                                200.6              198.5
         Total liabilities                          1,721.1            1,697.4
 
     Commitments and contingencies                        -                  -
 
     Stockholders' deficit:
       Common stock                                     0.4                0.4
       Capital in excess of par value                 359.6              326.0
       Accumulated deficit                           (595.6)            (571.9)
       Other                                          (86.6)             (66.2)
         Total stockholders' deficit                 (322.2)            (311.7)
         Total liabilities and
          stockholders' deficit                    $1,398.9           $1,385.7
 
 
                        Fisher Scientific International Inc.
                                  Segment Results
                                   (in millions)
 
 
                                                        Three Months Ended
                                                            March 31,
 
                                                      2001              2000
     Revenue
 
     Domestic Distribution                            $573.5            $536.9
 
     International Distribution                        110.6             113.9
 
     Laboratory Workstations                            41.8              38.3
 
     Eliminations                                      (38.9)            (35.9)
 
       Total                                          $687.0            $653.2
 
 
                                                         Three Months Ended
                                                             March 31,
 
                                                       2001              2000
     Operating Income (Loss)
 
     Domestic Distribution                             $38.3             $36.6
 
     International Distribution                          3.9               2.6
 
     Laboratory Workstations                             0.5               0.5
 
     Eliminations                                        -                (0.3)
 
          Segment sub-total                             42.7              39.4
 
     Restructuring and other one-time
      charges                                          (52.7)              -
 
          Total                                       $(10.0)            $39.4
 
 
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SOURCE Fisher Scientific International Inc.
    HAMPTON, N.H., April 26 /PRNewswire/ -- Fisher Scientific International
 Inc. (NYSE:   FSH), a world leader in serving science, today announced record
 first-quarter sales for the three-month period ended March 31, 2001,
 reflecting strong performance in the company's domestic and international
 distribution operations.
     Sales for the first quarter totaled $687.0 million, a 5.2% increase,
 compared with $653.2 million for the same period last year. Excluding the
 impact of foreign exchange, sales increased to $695.8 million for the current
 quarter, a 6.5% increase compared with the prior year's quarter. Operating
 income, excluding $52.7 million of nonrecurring expenses ($33.2 million after
 tax), totaled $42.7 million for the first quarter, compared with $39.4 million
 during the same quarter last year. The company recorded a net loss of $23.7
 million for the first quarter. Excluding nonrecurring expenses, net income
 totaled $9.5 million compared with $8.5 million in the corresponding quarter
 of last year.
     Earnings before interest, taxes and depreciation (EBITDA) totaled $58.7
 million excluding nonrecurring expenses, compared with $55.6 million in the
 first quarter of last year. Diluted earnings per share (EPS) totaled $(0.59)
 for the first quarter. Excluding nonrecurring expenses, EPS increased to $0.21
 for the first quarter, compared with $0.19 for the same period last year. EPS,
 excluding nonrecurring expenses and goodwill amortization, increased to $0.28
 for the first quarter, compared with $0.25 for the corresponding period last
 year.
     "Fisher's record first-quarter sales continue to benefit from favorable
 market dynamics including increased scientific research and development and
 healthcare-related spending," said Paul M. Montrone, chairman and chief
 executive officer of Fisher Scientific International.
 
     Special Items
     In the first quarter, the company recorded $52.7 million of restructuring
 and other nonrecurring charges, which includes $19.2 million related to a
 streamlining and consolidation program, resulting in a reduction of its
 workforce by approximately 5%. In addition, the company converted certain
 employee stock options into shares of common stock, which resulted in a non-
 cash compensation charge of $33.5 million.
     During the first quarter, Fisher completed its acquisition of Covance's
 CPPS division, which offers specialized services to customers engaged in
 phases III and IV of clinical drug trials. The acquired business, renamed
 Fisher Clinical Services, enhances Fisher's position in the pharmaceutical and
 biotech markets. The results of this business are included in the company's
 domestic-distribution segment.
 
     Business Segment Results
     Sales within domestic distribution grew to $573.5 million in the first
 quarter of 2001, an increase of 6.8% from the same period in 2000. In the
 first quarter, operating income, excluding $1.1 million of nonrecurring
 expenses related to the restructuring plan, increased to $38.3 million from
 $36.6 million in the corresponding period last year.
     International distribution sales totaled $110.6 million in the first
 quarter, a 2.9% decline from the same quarter last year. Excluding the impact
 of foreign exchange, sales increased to $118.5 million, representing a 4.0%
 increase compared with the corresponding quarter last year. For the first
 quarter, operating income increased to $3.9 million from $2.6 million in 2000.
     Sales within the laboratory-workstations segment increased 9.1% from the
 year-ago period to $41.8 million and operating income remained constant at
 $0.5 million. Order activity in the laboratory-workstations segment improved
 in the first quarter following a slow down in the latter half of 2000 in the
 industrial-research market.
 
     About Fisher Scientific International Inc.
     As a world leader in serving science, Fisher Scientific International Inc.
 (NYSE:   FSH) offers more than 600,000 products and services that enable
 scientific discovery and clinical laboratory testing services to more than
 350,000 customers located in approximately 145 countries. As a result of its
 broad product offering, integrated global logistics network and electronic-
 commerce capabilities, 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 life science, clinical laboratory and industrial-safety
 supply.
 
     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)
 
 
 
                                                        Three Months Ended
                                                             March 31,
 
                                                      2001              2000
 
     Sales                                           $687.0            $653.2
 
     Cost of sales                                    512.6             488.4
 
     Selling, general and administrative
      expense                                         132.8             125.4
 
     Restructuring and other charges                   51.6               -
 
     Income (loss) from operations                    (10.0)             39.4
 
     Interest and other expense, net                   26.9              24.0
 
     Income (loss) before income taxes                (36.9)             15.4
 
     Income tax provision (benefit)                   (13.2)              6.9
 
     Net income (loss)                               $(23.7)             $8.5
 
     Net income (loss) per common share:
 
            Basic                                    $(0.59)            $0.21
            Diluted                                  $(0.59)            $0.19
 
     Weighted average common shares
      outstanding:
 
            Basic                                      40.1              40.1
            Diluted                                    40.1              44.7
 
 
     Supplementary Information:
     The following amounts exclude
      restructuring and other one-time
      charges
 
     Income from operations                           $42.7             $39.4
 
     Net income                                        $9.5              $8.5
 
     Diluted net income per common share              $0.21             $0.19
 
 
                        Fisher Scientific International Inc.
                                   Balance Sheet
                                   (in millions)
 
                                                    March 31,      December 31,
                                                      2001               2000
     ASSETS
 
     Current assets:
       Cash and cash equivalents                      $45.2              $66.0
       Receivables, net                               178.6              296.8
       Inventories                                    233.4              224.2
       Other current assets                            65.0               63.6
         Total current assets                         522.2              650.6
 
     Property, plant and equipment                    294.0              251.3
     Goodwill                                         393.9              334.2
     Other assets                                     188.8              149.6
         Total assets                              $1,398.9           $1,385.7
 
     LIABILITIES AND STOCKHOLDERS'
      DEFICIT
 
     Current liabilities:
       Short-term debt                                $50.0              $47.6
       Accounts payable                               317.7              308.5
       Accrued and other current
        liabilities                                   165.4              151.7
         Total current liabilities                    533.1              507.8
 
     Long-term debt                                   987.4              991.1
     Other liabilities                                200.6              198.5
         Total liabilities                          1,721.1            1,697.4
 
     Commitments and contingencies                        -                  -
 
     Stockholders' deficit:
       Common stock                                     0.4                0.4
       Capital in excess of par value                 359.6              326.0
       Accumulated deficit                           (595.6)            (571.9)
       Other                                          (86.6)             (66.2)
         Total stockholders' deficit                 (322.2)            (311.7)
         Total liabilities and
          stockholders' deficit                    $1,398.9           $1,385.7
 
 
                        Fisher Scientific International Inc.
                                  Segment Results
                                   (in millions)
 
 
                                                        Three Months Ended
                                                            March 31,
 
                                                      2001              2000
     Revenue
 
     Domestic Distribution                            $573.5            $536.9
 
     International Distribution                        110.6             113.9
 
     Laboratory Workstations                            41.8              38.3
 
     Eliminations                                      (38.9)            (35.9)
 
       Total                                          $687.0            $653.2
 
 
                                                         Three Months Ended
                                                             March 31,
 
                                                       2001              2000
     Operating Income (Loss)
 
     Domestic Distribution                             $38.3             $36.6
 
     International Distribution                          3.9               2.6
 
     Laboratory Workstations                             0.5               0.5
 
     Eliminations                                        -                (0.3)
 
          Segment sub-total                             42.7              39.4
 
     Restructuring and other one-time
      charges                                          (52.7)              -
 
          Total                                       $(10.0)            $39.4
 
 
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 SOURCE  Fisher Scientific International Inc.