QUINCY, Ill., Feb. 13 /PRNewswire-FirstCall/ -- Gardner Denver, Inc.
(NYSE: GDI), a leading manufacturer of compressors and blowers for industrial
applications and pumps for the petroleum and industrial markets, announced
that revenues were $419.8 million for the year ended December 31, 2001.
Diluted earnings per share were $1.40 for the year and $0.33 for the fourth
quarter of 2001. Ross J. Centanni, Chairman, President and CEO said, "Given
the very challenging market conditions that have existed over the latter part
of the year, especially since September 11, we are pleased with our results.
Our profitability has held up better than that of many industrial companies in
this difficult environment, and cash flow from operations continues to grow."
The Company also announced a change in its segment reporting. The
Petroleum Products segment has been renamed the Pump Products segment. The
name was changed because the Company's water jetting operations are now
included in this segment, expanding its scope beyond petroleum related
products. The water jetting operations were previously included in the
Company's Compressed Air Products segment. Gardner Denver had previously
announced the formation of a Pump Division, comprised of its petroleum pump
and water jetting operations. The new segment reporting is effective with the
disclosures included in this release. Certain prior period amounts have been
restated to conform with the current presentation.
Fourth Quarter Results
Revenues for the three-month period increased $7.2 million, or 7%,
compared to the same period of 2000. Pump Products' revenues for the three-
month period increased approximately $2.2 million, or 9%, compared to the same
period of 2000, due to increased demand for drilling and well stimulation
pumps, partially offset by a decline in water jetting products. Compressed
Air Products' revenues, including $19.3 million from acquisitions, increased
$5.0 million, or 6%, for the three months of 2001, compared to 2000.
Excluding acquisitions, Compressed Air Products' revenues declined
approximately $14.3 million, or 18%, compared to the same period of 2000. The
sharp, broad-based decline of the U.S. economy, resulting partially from the
impact of the September 11th attack weakened sales of compressors and blowers.
This negative factor was partially offset by sales growth in European markets.
Net income was $5.2 million, or $0.33 diluted earnings per share, for the
fourth quarter of 2001, compared to $6.1 million, or $0.39 diluted earnings
per share, for the same period of 2000, representing a 15% decrease in diluted
earnings per share. The decreases in net income and diluted earnings per
share were primarily attributable to the negative impact of decreased leverage
of the Compressed Air Products segment's fixed costs on lower revenue volume
(excluding acquisitions), partially offset by an increase in Pump Products'
revenues and improved operating performance at the Company's well stimulation
pump and water jetting production facilities.
Full Year Results
Revenue and earnings growth, due to strong demand in the Pump Products
segment and acquisitions, were partially offset by declining revenues and
operating margin in the Compressed Air Products segment (excluding
acquisitions). For the year, total revenues, including $29.5 million from
acquisitions, increased $40.4 million, or 11%, compared to 2000. The
continued high level of oil and natural gas prices in late 2000 and during the
first half of 2001 caused a rise in demand for drilling and well stimulation
pumps. This resulted in a $39.1 million (54%) increase in revenues for the
Pump Products segment. Compressed Air Products' revenues increased slightly
to $308.0 million, as incremental revenues from acquisitions ($26.2 million)
and sales growth in European markets were offset by declining U.S. demand and
unfavorable foreign currency exchange rates.
Net income was $22.0 million for 2001, or $1.40 diluted earnings per
share, compared to $18.7 million, or $1.21 diluted earnings per share in 2000.
Diluted earnings per share in 2001 includes $0.10 from non-recurring items
related to a gain from litigation settlement proceeds ($0.08 per share) and
interest income on an income tax settlement ($0.02 per share). Excluding
these non-recurring items, the growth in net income and diluted earnings per
share was primarily attributable to the increased revenues and operating
earnings in the Pump Products segment, decreased interest expense and
acquisitions. These positive factors were partially offset by the decline of
revenues and operating earnings in the Compressed Air Products segment
(excluding acquisitions).
Financial Position and Cash Flow
During 2001, the Company generated $45 million in cash through operating
activities and had net borrowings of $49 million under its credit facilities.
These funds were used to complete acquisitions valued at $83 million and
invest approximately $11 million under capital programs to reduce costs,
improve efficiency and expand capacity.
Demand Outlook
Looking forward, Mr. Centanni said, "Market conditions for the Compressed
Air Products segment in the first half of 2002 are expected to be a
continuation of the stagnant economy we are currently experiencing. However,
we are beginning to see some increases in demand for small compressors and
blowers sold into the service segment of the U.S. economy. Low levels of
industrial demand combined with unseasonably warm weather have also pushed
down prices of oil and natural gas, which has negatively affected the Pump
Products segment, as order levels in the fourth quarter fell 27% from third
quarter levels. While we remain optimistic about the longer-term, which could
include a more rapid industrial recovery and the need for increased domestic
natural gas drilling and production, it appears that the first half of 2002
will continue to reflect reduced capital spending by our customers."
Based upon the current economic environment and activity levels in both
reporting segments, the Company anticipates that diluted earnings per share in
2002 will be approximately $0.24 to $0.28 in the first quarter and $1.40 to
$1.60 for the full year. This outlook is $0.05 per share less than previous
guidance due to the sharp decline in the U.S. economy since the third quarter
of 2001. These projections include the cessation of goodwill amortization, as
prescribed in SFAS 142, "Goodwill and Other Intangible Assets", which should
add approximately $0.24 to EPS in 2002. When comparing the estimate for 2002
to 2001, it is important to note that earnings for 2001 were favorably
impacted by "other income" items aggregating approximately $0.10 per share
that are not expected to recur in 2002. Expenses for pension and other post-
retirement benefits are also expected to negatively impact EPS in 2002 by
nearly $0.10 per share compared to 2001, due to lower investment performance,
lower interest rates and higher retiree medical costs.
Safe Harbor
All of the statements in this release, other than historical facts, are
forward-looking statements made in reliance upon the safe harbor of the
Private Securities Litigation Reform Act of 1995. As a general matter,
forward-looking statements are those focused upon anticipated events or trends
and expectations and beliefs relating to matters that are not historical in
nature. Such forward-looking statements are subject to uncertainties and
factors relating to Gardner Denver's operations and business environment, all
of which are difficult to predict and many of which are beyond the control of
the Company. These uncertainties and factors could cause actual results to
differ materially from those matters expressed in or implied by such forward-
looking statements. The following uncertainties and factors, among others,
could affect future performance and cause actual results to differ materially
from those expressed in or implied by forward-looking statements: the ability
to identify, negotiate and complete future acquisitions; the speed with which
the Company is able to integrate its recent acquisitions and realize the
related financial benefit; the domestic and/or worldwide level of oil and
natural gas prices and oil and gas drilling and production, which affect
demand for the Company's petroleum products; changes in domestic and/or
worldwide industrial production and industrial capacity utilization rates,
which affect demand for the Company's compressed air products; pricing of
Gardner Denver products; the degree to which the Company is able to penetrate
niche markets; the ability to maintain and to enter into key purchasing and
supply relationships; the ability to attract and retain quality management
personnel; and the continued successful implementation of cost reduction
efforts.
Comparisons of the financial results for the three and twelve month
periods ended December 31, 2001 and 2000 follow.
Gardner Denver will broadcast, through a live webcast, its conference call
to discuss fourth quarter and full year earnings on Thursday, February 14,
2002 at 9:30 a.m. Eastern. This free webcast will be available in listen-only
mode and can be accessed, for up to thirty days following the call, through
the Investor Relations page on the Gardner Denver website
( http://www.gardnerdenver.com ) or on CCBN's website ( http://www.companyboardroom.com ).
Gardner Denver, with 2001 revenues of $420 million, is a leading
manufacturer of reciprocating, rotary and vane compressors and blowers for
various industrial applications and pumps used in the petroleum and industrial
markets. Gardner Denver's news releases are available by facsimile
(800-758-5804, extension 303875) or by visiting the Company's website
( http://www.gardnerdenver.com ).
GARDNER DENVER, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except per share amounts and percentages)
(Unaudited)
Three Months Ended Year Ended
December 31, December 31,
% %
2001 2000 Change 2001 2000 Change
Revenues $110,894 $103,690 7 $419,770 $379,358 11
Costs and
Expenses:
Cost of sales 76,944 72,650 6 294,249 268,290 10
Depreciation
and
amortization 4,843 3,952 23 17,567 15,881 11
Selling and
administrative 19,397 15,443 26 69,678 59,784 17
Interest
expense 1,858 2,011 (8) 6,796 7,669 (11)
Other (income)/
expense, net (173) 134 229 (3,203) (2,160) 48
Income before
income taxes 8,025 9,500 (16) 34,683 29,894 16
Provision for
income taxes 2,796 3,441 (19) 12,659 11,210 13
Net income $5,229 $6,059 (14) $22,024 $18,684 18
Basic earnings
per share $0.33 $0.39 (15) $1.42 $1.22 16
Diluted earnings
per share $0.33 $0.39 (15) $1.40 $1.21 16
Basic weighted
average number
of shares
outstanding 15,632 15,357 15,553 15,300
Diluted weighted
average number
of shares
outstanding 15,880 15,533 15,783 15,489
Shares outstanding
as of 12/31 15,691 15,371
GARDNER DENVER, INC.
BUSINESS SEGMENT RESULTS
(in thousands, except percentages)
(Unaudited)
Three Months Ended Year Ended
December 31, December 31,
% %
2001 2000 Change 2001 2000 Change
Compressed Air
Products
Revenues $84,791 $79,757 6 $308,028 $306,679 ---
Operating
earnings 5,864 9,810 (40) 22,176 30,938 (28)
% of Revenues 6.9% 12.3% 7.2% 10.1%
Orders 76,938 80,565 (5) 296,019 301,742 (2)
Backlog 58,681 45,746 28 58,681 45,746 28
Pump Products
Revenues 26,103 23,933 9 111,742 72,679 54
Operating
earnings 3,846 1,836 109 16,100 4,465 261
% of Revenues 14.7% 7.7% 14.4% 6.1%
Orders 17,773 25,901 (31) 117,419 78,243 50
Backlog 20,483 14,498 41 20,483 14,498 41
CONDENSED BALANCE SHEET ITEMS
(Unaudited) % (Audited)
12/31/01 09/30/01 Change 12/31/00
Cash and equivalents $29,980 $27,445 9 $30,239
Receivables, net 85,538 90,569 (6) 79,448
Inventories, net 76,650 78,364 (2) 61,942
Current assets 201,135 204,850 (2) 179,916
Total assets 488,688 497,765 (2) 403,881
Short-term debt and
cur. maturities 55,500 55,556 --- 5,781
Current liabilities 132,702 137,850 (4) 68,243
Long-term debt, ex.
cur. maturities 112,105 119,125 (6) 115,808
Total liabilities 289,960 304,587 (5) 232,733
Total stockholders'
equity 198,728 193,178 3 171,148
SOURCE Gardner Denver, Inc.
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Related links:
http://www.gardnerdenver.com
Company News On-Call:
http://www.prnewswire.com/comp/303875.html
CONTACT:
Helen W. Cornell, Vice President, Strategic
Planning and Operations Support of Gardner Denver, Inc.,
+1-217-228-8209
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