|
Management's Discussion
and
Analysis of Financial Condition and Results of Operations
Overview
We report our financial results on the basis of three business
segments: domestic distribution, international distribution
and laboratory workstations. The domestic and international
distribution segments engage in the supply, marketing, service
and manufacture of scientific, clinical, educational, and
occupational health and safety products. The laboratory workstations
segment manufactures laboratory workstations, fume hoods and
enclosures for technology and communication centers. Until
1999, we operated a fourth segment, technology, which we disposed
of through the spinoff of ProcureNet, our former outsourcing
and supply chain management technology business, in April
1999 and the sale of our UniKix Technology software business
in July 1999.
In December 1998, we acquired 90%
of Bioblock Scientific S.A., a leading distributor of scientific
and laboratory instrumentation in France. We acquired the
remaining 10% of Bioblock in the first quarter of 1999. From
1998 to 2000, we made other smaller acquisitions of laboratory
products distributors and other businesses.
We have accounted for all of our acquisitions as purchases,
with the operations of the acquired companies and businesses
included in our financial statements from the dates of acquisition.
Recent Developments
On February 14, 2001, we acquired the pharmaceutical packaging
services business of Covance, which we renamed Fisher Clinical
Services. The acquired business enables pharmaceutical and
biotechnology companies and other customers to outsource the
packaging of prescription drugs used in clinical trials. The
purchase price was $137.5 million, which we financed through
the sale of receivables under our receivables securitization
facility.
During the first quarter of 2001,
we commenced implementation of a streamlining plan aimed at
improving our operations, including the reduction of our workforce
by approximately 5%. We estimate that the total costs associated
with this plan will be approximately $24.0 million to $26.0
million, of which approximately $18.0 million will be recorded
as a restructuring charge in the first quarter of 2001.
Results of Operations
The following table sets forth our sales and income (loss)
from operations by segment (in millions):
|
