Just as your pulse is checked during a routine physical, free cash flow is used as an indicator of a company's health. It equals the cash brought in from operations minus the money needed to pay the bills. Think about leftover money in your checking account after you pay this month's bills.

Investors and analysts see this leftover money as a gauge of a company's ability to perform. It is available for transactions such as handing out dividends and working on new products.

Some argue free cash flow is wrongly overshadowed by the emphasis often placed on earnings. Earnings numbers can be manipulated and don't always tell the whole story -- and earnings don't mean much if there's nothing left over after a company pays its expenses. Even if you bring in a six-figure salary, but no money left after paying the bills, are you in great financial shape?

You don't have to be Einstein to figure out free cash flow. To calculate the number, subtract the company's expenditures and dividends from its operating cash flow.

If the free cash flow is written in red ink, it doesn't necessarily signal curtains. This is common for young companies looking to grow. It also could be a result of heavy investments, which in the long run could be worth a standing ovation.

Home / Markets / Industries / Finance

Monday, July 07, 2008

Citi Capital Strategies Advises Oilind Safety on its Acquisition by Airgas, Inc.

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NEW YORK, Jul 07, 2008 (BUSINESS WIRE) ----Oilind Safety, a leading provider of rental safety equipment and safety services in the United States, has been acquired by Airgas, Inc., one of the largest U.S. distributors of safety products and a leading distributor of industrial, medical and specialty gases and hardgoods.

Citi Capital Strategies, a leading provider of investment banking services to privately held businesses, served as the exclusive financial advisor to Oilind Safety. The terms of the transaction were not disclosed.

"We are pleased to team our client with a quality buyer that will help Oilind Safety to continue its growth and assist with the expansion of Oilind Safety's rental safety equipment and safety services footprint in the U.S. market," said Greg A. Moore, Managing Director at Citi Capital Strategies.

"Oilind Safety, Inc. is thrilled to be partnering with a company that has such a national scale and strong presence as Airgas," said Kirk Peda, current President of Oilind Safety. "Working with Airgas' talented management team will allow us to broaden our expertise in the important industrial safety category and will provide synergies in Airgas' construction and rental businesses. With its tremendous resources, Airgas is an ideal fit for Oilind Safety, and we look forward to working with them to execute our combined vision for the future."

Mike Molinini, executive vice president and chief operating officer of Airgas, Inc. added, "The addition of Oilind Safety will help us take our construction business to the next level." Oilind Safety, headed by Peda, will report to Jack Appolonia, vice president of construction and rental business.

Citi Capital Strategies is a leading investment bank dedicated to serving the needs of closely held and family owned businesses. Citi Capital Strategies specializes in mergers, acquisitions, recapitalizations, ESOPs, corporate real estate investment banking services, and capital solutions for private businesses. Citi Capital Strategies is a division of Citigroup Global Markets Inc. Member SIPC. For more information, visit our website at www.citicapitalstrategies.com

Oilind Safety, founded in 1963, provides a complete line of rental safety equipment, such as fall protection, breathing air and gas monitoring systems, and safety management services for audits, training and emergency response planning. For more information, visit Oilind Safety's website at www.oilind.com.

Headquartered in Radnor, PA., Airgas, Inc. is the largest U.S. distributor of industrial, medical, and specialty gases and related hardgoods, such as welding equipment and safety supplies. For more information, visit Airgas' website at www.airgas.com.

SOURCE: Citi Capital Strategies

Press: Citi
   Global Wealth Management Media Relations Mark Costiglio, 212-559-2178 mark.costiglio@citi.com

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