EX-11 2 w17240exv11.htm CALCULATION OF EARNINGS PER SHARE exv11
 

EXHIBIT 11
Airgas, Inc.
Earnings Per Share Computations
(In thousands, except per share amounts)
                                 
    Three Months Ended     Nine Months Ended  
    December 31,     December 31,  
Basic Earnings per Share Computation   2005     2004     2005     2004  
Numerator:
                                
Income from continuing operations
   $ 32,702     $ 22,929     $ 91,517     $ 67,662  
Income (loss) from discontinued operations
     (1,877 )     44       (1,424 )     204  
 
                        
Net earnings
   $ 30,825     $ 22,973     $ 90,093     $ 67,866  
 
                        
 
                                
Denominator:
                                
Basic shares outstanding
     77,037       75,150       76,646       74,673  
 
                        
 
                                
Basic earnings per share from continuing operations
   $ 0.42     $ 0.31     $ 1.19     $ 0.91  
Basic earnings (loss) per share from discontinued operations
     (0.02 )     —       (0.01 )     —  
 
                        
Basic net earnings per share
   $ 0.40     $ 0.31     $ 1.18     $ 0.91  
 
                        
                                 
    Three Months Ended     Nine Months Ended  
    December 31,     December 31,  
Diluted Earnings per Share Computation   2005     2004(4)     2005     2004(4)  
Numerator:
                                
Income from continuing operations
   $ 32,702     $ 22,929     $ 91,517     $ 67,662  
Plus: Preferred stock dividends(1) (2)
     711       —       2,134       —  
Plus: Income taxes on earnings of National Welders(3)
     184       —       509       —  
 
                        
 
                                
Income from continuing operations assuming preferred stock conversion
   $ 33,597     $ 22,929     $ 94,160     $ 67,662  
Income (loss) from discontinued operations
     (1,877 )     44       (1,424 )     204  
 
                        
Net earnings assuming preferred stock conversion
   $ 31,720     $ 22,973     $ 92,736     $ 67,866  
 
                        
 
                                
Denominator:
                                
Basic shares outstanding
     77,037       75,150       76,646       74,673  
Incremental shares from assumed conversions:
                                
Stock options and warrants
     2,211       2,211       2,022       2,057  
Preferred stock of National Welders(1)
     2,327       —       2,327       —  
 
                        
Diluted shares outstanding
     81,575       77,361       80,995       76,730  
 
                        
 
                                
Diluted earnings per share from continuing operations
   $ 0.41     $ 0.30     $ 1.16     $ 0.88  
Diluted earnings (loss) per share from discontinued operations
     (0.02 )     —       (0.02 )     —  
 
                        
Diluted net earnings per share
   $ 0.39     $ 0.30     $ 1.14     $ 0.88  
 
                        
(1) - Pursuant to a joint venture agreement between the Company and the holders of the preferred stock of National Welders, between June 6, 2005 and June 30, 2009, the preferred shareholders have the option to exchange their 3.2 million preferred shares of National Welders either for cash at a price of $17.78 per share or to tender them to the joint venture in exchange for approximately 2.3 million shares of Airgas common stock. If Airgas common stock has a market value of $24.45 per share, the stock and cash redemption options are equivalent.
(b) - If the preferred stockholders of National Welders convert their preferred stock to Airgas common stock, the 5% preferred stock dividend, recognized as “Minority interest in earnings of consolidated affiliate,” would no longer be paid to the preferred stockholders, resulting in additional net earnings for Airgas.
(3) - The earnings of National Welders for tax purposes are treated as a deemed dividend to Airgas, net of an 80% dividend exclusion. Upon the assumed conversion of National Welders preferred stock to Airgas common stock, National Welders would become a wholly owned subsidiary of Airgas. As a wholly owned subsidiary, the net earnings of National Welders would not be subject to additional tax at the Airgas level.
(4) - The assumed conversion of National Welders preferred stock to Airgas common stock is not presented because it was anti-dilutive.