Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
SlideShare a Scribd company logo

danaher 03-4Qsupp

•
•
F
finance24

Danaher Corporation provided a document summarizing its selling, general and administrative costs, operating profit, and free cash flow for the quarter and year ended December 31, 2003. Some key highlights include: - Total company revenue for the quarter increased 16.7% to $1.49 billion compared to the same quarter last year. - Operating profit before special credits for the total company was $239.6 million for the quarter, up 20.1% from the prior year. - Free cash flow for the year was $781.2 million, up 21.1% from 2002.

1 of 4
Download to read offline
Danaher Corporation Summary of Selling, General and Administrative Costs (SG&A) and Operating Profit Excluding the Impact of Special Credits 31-Dec-03 (in $ 000's) (Unaudited) Quarter Ended Year Ended 31-Dec-03 31-Dec-02 31-Dec-03 31-Dec-02 Total Company: Total Company Revenue 1,488,778 1,274,978 5,293,876 4,577,232 SG&A Before Special Credits 364,670 305,872 1,316,357 1,097,365 Special Credits: (Gain) Loss on Sales of Real Estate 83 (952) (785) (6,157) SG&A as Reported under GAAP 364,753 304,920 1,315,572 1,091,208 SG&A Before Special Credits as a % of Revenue 24.5% 24.0% 24.9% 24.0% SG&A as Reported under GAAP as a % of Revenue 24.5% 23.9% 24.9% 23.8% Operating Profit Before Special Credits 239,609 199,671 822,710 688,692 Special Credits: Gain (Loss) on Sales of Real Estate (83) 952 785 6,157 Adjustment of Restructuring Accruals - 6,273 - 6,273 Pension Curtailment Gain 22,500 - 22,500 - Operating Profit as Reported under GAAP 262,026 206,896 845,995 701,122 Operating Profit Before Special Credits as a % of Revenue 16.1% 15.7% 15.5% 15.0% Operating Profit as Reported under GAAP as a % of Revenue 17.6% 16.2% 16.0% 15.3% Process/Environmental Controls Segment: Segment Revenue 1,149,957 967,176 4,096,686 3,385,154 Operating Profit Before Special Credits 199,469 157,196 674,333 529,595 Special Credits: Gain (Loss) on Sales of Real Estate (83) 952 10 6,157 Adjustment of Restructuring Accruals - 4,705 - 4,705 Operating Profit as Reported under GAAP 199,386 162,853 674,343 540,457 Operating Profit Before Special Credits as a % of Revenue 17.3% 16.3% 16.5% 15.6% Operating Profit as Reported under GAAP as a % of Revenue 17.3% 16.8% 16.5% 16.0% Tools and Components Segment: Segment Revenue 338,821 307,802 1,197,190 1,192,078 Operating Profit Before Special Credits 47,017 47,837 173,046 179,791 Special Credits: Gain (Loss) on Sales of Real Estate - - 775 - Adjustment of Restructuring Accruals - 1,568 - 1,568 Operating Profit as Reported under GAAP 47,017 49,405 173,821 181,359 Operating Profit Before Special Credits as a % of Revenue 13.9% 15.5% 14.5% 15.1% Operating Profit as Reported under GAAP as a % of Revenue 13.9% 16.1% 14.5% 15.2% Note: The Company believes the above measures of SG&A and Operating Profit before the effect of special credits give the reader of the financial statements additional information about the cost structure of the business and results of operations without the benefit from these non-recurring items. The reader should also evaluate the Company's performance as reported under traditional measures presented under Generally Accepted Accounting Principals (GAAP) including operating profit and net income.
Danaher Corporation Supplemental Financial Information 31-Dec-03 Quarter Ended Quarter Ended Quarter Ended Quarter Ended Free Cash Flows ($ in 000's): Year Ended Year Ended 28-Mar-03 29-Mar-02 27-Jun-03 28-Jun-02 26-Sep-03 27-Sep-02 31-Dec-03 31-Dec-02 31-Dec-03 31-Dec-02 31-Dec-01 31-Dec-00 Operating Cash Flows $ 214,336 $ 263,247 $ 234,912 $ 130,199 $ 170,111 $ 171,983 $ 242,185 $ 144,918 $ 861,544 $ 710,347 $ 608,471 $ 512,245 Payments for Property, Plant & Equipment (Capital Expenditures) $ (15,617) $ (12,923) $ (22,004) $ (15,318) $ (16,439) $ (16,712) $ (26,283) $ (20,477) $ (80,343) $ (65,430) (84,457) (103,718) Free Cash Flow $ 198,719 $ 250,324 $ 212,908 $ 114,881 $ 153,672 $ 155,271 $ 215,902 $ 124,441 $ 781,201 $ 644,917 $ 524,014 $ 408,527 NOTE: Free cash flow is defined as operating cash flow less purchases of Ratio of Free Cash Flow to Net Earnings: property, plant and equipment. Management believes that free cash flow provides useful information to investors regarding the Company's ability to Free Cash Flow from Above $ 781,201 generate cash without external financings. Management uses free cash flow to help gauge the resources available for strategic opportunities such as making Net Earnings 536,834 acquisitions, investing in the business and strengthening the Company's balance sheet, and uses this measure in making operating decisions, allocating Free Cash Flow to Net Earnings 146% financial resources and for budget planning purposes. Free cash flow does not, however, take into account the Company's debt service requirements and other non-discretionary expenditures and therefore is not necessarily indicative of amounts of cash that may be available for discretionary uses. Free cash flow should be considered in addition to, and not in lieu of, cash flow from operations, net earnings and other measures of financial performance prepared in accordance with GAAP.
Danaher Corporation Supplemental Financial Information 31-Dec-03 Pro forma Pro Forma 12- Adjustmemt to 31-2003 Reflect Adjusted for the Purchase of Purchase of Debt to Total Capital and Net Debt Radiometer and Radiometer and Gendex (A) Gendex to Total Capital Ratios ($ in 000's): Actual Balance As Of: 31-Dec-03 31-Dec-02 Notes Payable and Current Portion of Long-term Debt $ 14,385 $ 112,542 $ - $ 14,385 Long-term Debt 1,284,498 1,197,422 - $ 1,284,498 Total debt 1,298,883 1,309,964 - $ 1,298,883 Total Stockholders' Equity 3,646,709 3,009,599 - $ 3,646,709 Total Capital $ 4,945,592 $ 4,319,563 $ - $ 4,945,592 Debt to Total Capital Ratio 26.3% 30.3% 26.3% Total Debt $ 1,298,883 $ 1,309,964 $ - $ 1,298,883 Less: Cash and Cash Equivalents (1,230,156) (810,463) 875,000 $ (355,156) Net Debt 68,727 499,501 - $ 943,727 Total Capital $ 4,945,592 $ 4,319,563 $ - $ 4,945,592 Net Debt to Total Capital Ratio 1.4% 11.6% 19.1% NOTE: Debt to Total Capital is defined as the ratio of Total Debt (including notes payable, current portion of long-term debt and long-term debt) to Total Capital (the sum of Total Debt and Stockholders’ Equity). Net Debt to Total Capital is defined as the ratio of Total Debt less Cash and Cash Equivalents to Total Capital. Management believes these ratios provide useful information to investors regarding the Company's debt leverage in relation to the size of its available capital base and existing cash resources. Management uses these ratios to evaluate the Company’s leverage over time to help determine the ability of the Company to access additional borrowing capacity. These ratios do not however necessarily indicate the ability of the Company to satisfy the debt service requirements in existing or future debt agreements. These ratios should be considered in addition to, and not in lieu of, other measures of liquidity including working capital prepared in accordance with GAAP. (A) Reflects the use subsequent to December 31, 2003 of approximately $875 million for the purchase of Radiometer Medical S/A and the purchase of the assets and certain liabilities of the Gendex division of Dentsply.
DANAHER CORPORATION AND SUBSIDIARIES SUPPLEMENTAL INCOME STATEMENT DATA (in thousands, except per share amounts) Quarter Ended Year Ended 12/31/03 12/31/02 12/31/03 12/31/02 Net earnings before unusual items $ 155,377 $ 124,443 $ 521,675 $ 426,061 Pension curtailment gain, net of tax 14,625 -- 14,625 -- Gains (losses) on sale of real estate, net of tax (56) 609 534 3,940 Effect of lower tax rate on prior quarters (A) -- 2,520 -- -- After-tax impact of restructuring charge -- 4,140 -- 4,140 Reduction of tax reserves related to previously discontinued operation -- 30,000 -- 30,000 Effect of accounting change, net of tax, SFAS 142 -- -- -- (173,750) Net earnings $ 169,946 $ 161,712 $ 536,834 $ 290,391 Diluted net earnings per share before unusual items $0.97 $0.79 $3.28 $2.74 Pension curtailment gain, net of tax 0.09 -- 0.09 -- Gains on sale of real estate, net of tax -- -- -- 0.02 Effect of lower tax rate on prior quarters (A) -- 0.02 -- -- After-tax impact of restructuring charge -- 0.03 -- 0.03 Reduction of tax reserves related to previously discontinued operation -- 0.19 -- 0.19 Effect of accounting change, net of tax, SFAS 142 -- -- -- (1.10) Diluted net earnings per share $1.06 $1.03 $3.37 $1.88 (A) Represents the effect on the fourth quarter of 2002 of lowering the full year effective income tax rate to 34% from 34.5% used during the first three quarters of 2002. This reconciliation is presented to quantify the financial impact of unusual items on net earnings and net earnings per share. Since these unusual items have the impact of increasing reported net earnings (with the exception of the change in accounting principle), we believe it is important to quantify the impact these items have on reported results to enable the reader a better understanding of the earnings trends excluding these items. These measures should be read in combination with the overall financial results presented in the Statement of Earnings for the periods presented.

More Related Content

danaher 03-4Qsupp

  • 1. Danaher Corporation Summary of Selling, General and Administrative Costs (SG&A) and Operating Profit Excluding the Impact of Special Credits 31-Dec-03 (in $ 000's) (Unaudited) Quarter Ended Year Ended 31-Dec-03 31-Dec-02 31-Dec-03 31-Dec-02 Total Company: Total Company Revenue 1,488,778 1,274,978 5,293,876 4,577,232 SG&A Before Special Credits 364,670 305,872 1,316,357 1,097,365 Special Credits: (Gain) Loss on Sales of Real Estate 83 (952) (785) (6,157) SG&A as Reported under GAAP 364,753 304,920 1,315,572 1,091,208 SG&A Before Special Credits as a % of Revenue 24.5% 24.0% 24.9% 24.0% SG&A as Reported under GAAP as a % of Revenue 24.5% 23.9% 24.9% 23.8% Operating Profit Before Special Credits 239,609 199,671 822,710 688,692 Special Credits: Gain (Loss) on Sales of Real Estate (83) 952 785 6,157 Adjustment of Restructuring Accruals - 6,273 - 6,273 Pension Curtailment Gain 22,500 - 22,500 - Operating Profit as Reported under GAAP 262,026 206,896 845,995 701,122 Operating Profit Before Special Credits as a % of Revenue 16.1% 15.7% 15.5% 15.0% Operating Profit as Reported under GAAP as a % of Revenue 17.6% 16.2% 16.0% 15.3% Process/Environmental Controls Segment: Segment Revenue 1,149,957 967,176 4,096,686 3,385,154 Operating Profit Before Special Credits 199,469 157,196 674,333 529,595 Special Credits: Gain (Loss) on Sales of Real Estate (83) 952 10 6,157 Adjustment of Restructuring Accruals - 4,705 - 4,705 Operating Profit as Reported under GAAP 199,386 162,853 674,343 540,457 Operating Profit Before Special Credits as a % of Revenue 17.3% 16.3% 16.5% 15.6% Operating Profit as Reported under GAAP as a % of Revenue 17.3% 16.8% 16.5% 16.0% Tools and Components Segment: Segment Revenue 338,821 307,802 1,197,190 1,192,078 Operating Profit Before Special Credits 47,017 47,837 173,046 179,791 Special Credits: Gain (Loss) on Sales of Real Estate - - 775 - Adjustment of Restructuring Accruals - 1,568 - 1,568 Operating Profit as Reported under GAAP 47,017 49,405 173,821 181,359 Operating Profit Before Special Credits as a % of Revenue 13.9% 15.5% 14.5% 15.1% Operating Profit as Reported under GAAP as a % of Revenue 13.9% 16.1% 14.5% 15.2% Note: The Company believes the above measures of SG&A and Operating Profit before the effect of special credits give the reader of the financial statements additional information about the cost structure of the business and results of operations without the benefit from these non-recurring items. The reader should also evaluate the Company's performance as reported under traditional measures presented under Generally Accepted Accounting Principals (GAAP) including operating profit and net income.
  • 2. Danaher Corporation Supplemental Financial Information 31-Dec-03 Quarter Ended Quarter Ended Quarter Ended Quarter Ended Free Cash Flows ($ in 000's): Year Ended Year Ended 28-Mar-03 29-Mar-02 27-Jun-03 28-Jun-02 26-Sep-03 27-Sep-02 31-Dec-03 31-Dec-02 31-Dec-03 31-Dec-02 31-Dec-01 31-Dec-00 Operating Cash Flows $ 214,336 $ 263,247 $ 234,912 $ 130,199 $ 170,111 $ 171,983 $ 242,185 $ 144,918 $ 861,544 $ 710,347 $ 608,471 $ 512,245 Payments for Property, Plant & Equipment (Capital Expenditures) $ (15,617) $ (12,923) $ (22,004) $ (15,318) $ (16,439) $ (16,712) $ (26,283) $ (20,477) $ (80,343) $ (65,430) (84,457) (103,718) Free Cash Flow $ 198,719 $ 250,324 $ 212,908 $ 114,881 $ 153,672 $ 155,271 $ 215,902 $ 124,441 $ 781,201 $ 644,917 $ 524,014 $ 408,527 NOTE: Free cash flow is defined as operating cash flow less purchases of Ratio of Free Cash Flow to Net Earnings: property, plant and equipment. Management believes that free cash flow provides useful information to investors regarding the Company's ability to Free Cash Flow from Above $ 781,201 generate cash without external financings. Management uses free cash flow to help gauge the resources available for strategic opportunities such as making Net Earnings 536,834 acquisitions, investing in the business and strengthening the Company's balance sheet, and uses this measure in making operating decisions, allocating Free Cash Flow to Net Earnings 146% financial resources and for budget planning purposes. Free cash flow does not, however, take into account the Company's debt service requirements and other non-discretionary expenditures and therefore is not necessarily indicative of amounts of cash that may be available for discretionary uses. Free cash flow should be considered in addition to, and not in lieu of, cash flow from operations, net earnings and other measures of financial performance prepared in accordance with GAAP.
  • 3. Danaher Corporation Supplemental Financial Information 31-Dec-03 Pro forma Pro Forma 12- Adjustmemt to 31-2003 Reflect Adjusted for the Purchase of Purchase of Debt to Total Capital and Net Debt Radiometer and Radiometer and Gendex (A) Gendex to Total Capital Ratios ($ in 000's): Actual Balance As Of: 31-Dec-03 31-Dec-02 Notes Payable and Current Portion of Long-term Debt $ 14,385 $ 112,542 $ - $ 14,385 Long-term Debt 1,284,498 1,197,422 - $ 1,284,498 Total debt 1,298,883 1,309,964 - $ 1,298,883 Total Stockholders' Equity 3,646,709 3,009,599 - $ 3,646,709 Total Capital $ 4,945,592 $ 4,319,563 $ - $ 4,945,592 Debt to Total Capital Ratio 26.3% 30.3% 26.3% Total Debt $ 1,298,883 $ 1,309,964 $ - $ 1,298,883 Less: Cash and Cash Equivalents (1,230,156) (810,463) 875,000 $ (355,156) Net Debt 68,727 499,501 - $ 943,727 Total Capital $ 4,945,592 $ 4,319,563 $ - $ 4,945,592 Net Debt to Total Capital Ratio 1.4% 11.6% 19.1% NOTE: Debt to Total Capital is defined as the ratio of Total Debt (including notes payable, current portion of long-term debt and long-term debt) to Total Capital (the sum of Total Debt and Stockholders’ Equity). Net Debt to Total Capital is defined as the ratio of Total Debt less Cash and Cash Equivalents to Total Capital. Management believes these ratios provide useful information to investors regarding the Company's debt leverage in relation to the size of its available capital base and existing cash resources. Management uses these ratios to evaluate the Company’s leverage over time to help determine the ability of the Company to access additional borrowing capacity. These ratios do not however necessarily indicate the ability of the Company to satisfy the debt service requirements in existing or future debt agreements. These ratios should be considered in addition to, and not in lieu of, other measures of liquidity including working capital prepared in accordance with GAAP. (A) Reflects the use subsequent to December 31, 2003 of approximately $875 million for the purchase of Radiometer Medical S/A and the purchase of the assets and certain liabilities of the Gendex division of Dentsply.
  • 4. DANAHER CORPORATION AND SUBSIDIARIES SUPPLEMENTAL INCOME STATEMENT DATA (in thousands, except per share amounts) Quarter Ended Year Ended 12/31/03 12/31/02 12/31/03 12/31/02 Net earnings before unusual items $ 155,377 $ 124,443 $ 521,675 $ 426,061 Pension curtailment gain, net of tax 14,625 -- 14,625 -- Gains (losses) on sale of real estate, net of tax (56) 609 534 3,940 Effect of lower tax rate on prior quarters (A) -- 2,520 -- -- After-tax impact of restructuring charge -- 4,140 -- 4,140 Reduction of tax reserves related to previously discontinued operation -- 30,000 -- 30,000 Effect of accounting change, net of tax, SFAS 142 -- -- -- (173,750) Net earnings $ 169,946 $ 161,712 $ 536,834 $ 290,391 Diluted net earnings per share before unusual items $0.97 $0.79 $3.28 $2.74 Pension curtailment gain, net of tax 0.09 -- 0.09 -- Gains on sale of real estate, net of tax -- -- -- 0.02 Effect of lower tax rate on prior quarters (A) -- 0.02 -- -- After-tax impact of restructuring charge -- 0.03 -- 0.03 Reduction of tax reserves related to previously discontinued operation -- 0.19 -- 0.19 Effect of accounting change, net of tax, SFAS 142 -- -- -- (1.10) Diluted net earnings per share $1.06 $1.03 $3.37 $1.88 (A) Represents the effect on the fourth quarter of 2002 of lowering the full year effective income tax rate to 34% from 34.5% used during the first three quarters of 2002. This reconciliation is presented to quantify the financial impact of unusual items on net earnings and net earnings per share. Since these unusual items have the impact of increasing reported net earnings (with the exception of the change in accounting principle), we believe it is important to quantify the impact these items have on reported results to enable the reader a better understanding of the earnings trends excluding these items. These measures should be read in combination with the overall financial results presented in the Statement of Earnings for the periods presented.