QUINCY, Ill., Feb. 14 /PRNewswire/ -- 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 $379.4 million for the year ended December 31, 2000. Diluted earnings
per share were $1.21 for the year and $0.39 for the fourth quarter of 2000
including the net impact of non-recurring items which reduced diluted earnings
per share by $0.02. Excluding the impact of these non-recurring items,
diluted earnings per share were $0.41 and $1.23 for the fourth quarter and
full year, respectively.
Fourth Quarter Results
Revenues for the three-month period increased $11.8 million, or 13%,
compared to the same period of 1999. Petroleum revenues for the three-month
period increased approximately $9.0 million, or 90%, compared to the same
period of 1999, due to increased demand for well servicing and stimulation
pumps and drilling pumps. Compressor products revenues increased
$2.7 million, or 3%, for the three months of 2000, compared to 1999, as a
result of incremental revenues from acquisitions. Excluding these
acquisitions, compressor revenues declined approximately $2.7 million, or 3%,
compared to the same period of 1999 primarily due to unfavorable foreign
currency exchange rates.
Higher revenues and increased leverage of fixed costs resulted in a 25%
increase in net income for the three-month period of 2000 as compared to the
same period of the previous year. Net income was $6.1 million, or
$0.39 diluted earnings per share, for the fourth quarter of 2000, compared to
$4.9 million, or $0.32 diluted earnings per share, for the same period of
1999, representing a 22% increase in diluted earnings per share.
Sequentially, revenues increased $13.0 million, or 14%, and net income
increased $2.0 million, or 50%, in the fourth quarter compared to that of the
third, as revenues for both petroleum and compressor products improved.
During the fourth quarter, the Company recorded a $0.9 million after-tax
charge ($0.06 per share) to write-off expenses associated with an
unconsummated acquisition. The Company also recognized $0.6 million of
after-tax earnings ($0.04 per share) as a result of unrelated litigation
settlement proceeds received in the fourth quarter. The net impact of these
non-recurring items was a $0.02 reduction in diluted earnings per share.
Excluding the impact of the non-recurring items, diluted earnings per share
increased 28% from the comparable prior year quarter.
Ross J. Centanni, Chairman, President and CEO said, "As expected, the
resurgence in the petroleum products segment continued during the quarter,
resulting in the strongest operating results for our Company since 1998. Our
solid cash flow also supported our acquisition program and internal
investment, which provided operating and marketing synergy, expanded our
presence in new markets and contributed to revenue growth."
Full Year Results
Revenue growth due to heightened demand in the petroleum segment,
acquisitions and expanded manufacturing capacity was offset by increased
manufacturing overhead spending and unfavorable variances on well servicing
and stimulation pumps. For the year, total revenues increased $52.3 million,
or 16%, compared to 1999. The significant increase in the prices of oil and
natural gas in 2000 caused a rise in demand for well servicing and stimulation
pumps and drilling pumps which generated an increase of $27.7 million, or 92%,
in revenues for petroleum products. Compressor products revenues increased
$24.6 million, or 8%, compared to the previous year primarily due to
incremental revenue from acquisitions partially offset by unfavorable foreign
currency exchange rates.
Net income was $18.7 million for 2000, or $1.21 diluted earnings per share
($1.23 excluding the impact of the non-recurring items noted above), compared
to $18.0 million, or $1.18 diluted earnings per share, in 1999. Growth in net
income was primarily hampered by lower overall gross profit margins and higher
levels of interest expense. Lower overall gross profit margins were
principally the result of unfavorable sales mix (including a lower proportion
of higher margin aftermarket products in both segments) combined with
increased manufacturing variances and higher manufacturing overhead spending
(including engineering and product development). Increased interest expense
was due to higher average borrowings (primarily related to our acquisitions)
and higher average interest rate levels.
Financial Position and Cash Flow
During 2000, the Company generated almost $31 million in cash through
operating activities and had net borrowings of $2 million under its credit
facilities. These funds were used to complete acquisitions valued at
$20 million, and invest approximately $13 million under our capital program to
reduce costs, improve efficiency and expand capacity.
Demand Outlook
Mr. Centanni said, "As anticipated, orders for well servicing and drilling
pumps improved in the fourth quarter of 2000, leading to a 31% increase in
petroleum products revenues compared to the previous quarter. Backlog for
this segment is up more than 80% from the end of 1999 and 10% from the end of
the third quarter. As we enter 2001, this should help us combat a continued
slow industrial economy, which may limit compressor segment orders to present
levels or modest increases. Based upon the current activity level in our
petroleum products segment, the Company's diluted earnings per share,
excluding the effect of any new acquisitions, are anticipated to increase
approximately 15% in 2001 compared to 2000 if oil and natural gas prices
remain near current levels. Our outlook for the first quarter of 2001 is not
as optimistic, with current expectations in a more modest range of 3%-5%
growth in diluted earnings per share from the comparable prior year period as
the petroleum recovery continues to increase its momentum."
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, including, without
limitation, the statements made under the caption "Demand Outlook." 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 successful
integration of recent acquisitions; the domestic and/or worldwide level of oil
and natural gas prices and oil and gas drilling and production, which affects
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; and the continued successful implementation of cost
reduction efforts.
Comparisons of the financial results for the three and twelve month
periods ended December 31, 2000 and 1999 follow.
Gardner Denver will broadcast, through a live webcast, its conference call
to discuss fourth quarter and full year earnings on Thursday, February 15,
2001 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 StreetFusion's website
( http://www.streetfusion.com ).
Gardner Denver, with 2000 revenues of $379 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,
% %
2000 1999 Change 2000 1999 Change
Revenues $103,690 $91,921 13 $379,358 $327,067 16
Costs and Expenses:
Cost of sales 72,650 64,866 12 268,290 226,550 18
Depreciation and
amortization 3,952 3,873 2 15,881 14,222 12
Selling and
administrative 15,443 14,418 7 59,784 53,080 13
Interest expense 2,011 1,793 12 7,669 5,934 29
Other (income)/
expense, net 134 (703) (119) (2,160) (1,876) 15
Income before
income taxes 9,500 7,674 24 29,894 29,157 3
Provision for
income taxes 3,441 2,817 22 11,210 11,109 1
Net income $6,059 $4,857 25 $18,684 $18,048 4
Basic earnings
per share $0.39 $0.32 22 $1.22 $1.20 2
Diluted earnings
per share $0.39 $0.32 22 $1.21 $1.18 3
Basic weighted
average number
of shares
outstanding 15,357 15,010 15,300 15,018
Diluted weighted
average number
of shares
outstanding 15,533 15,279 15,489 15,358
Shares outstanding
as of 12/31 15,371 15,079
Note: The Consolidated Statement of Operations and the Business Segment
Results are presented in accordance with the requirements of the Financial
Accounting Standards Board's Emerging Issues Task Force 00-10, "Accounting
for Shipping and Handling Fees and Costs" and thus, include outbound
freight billed to customers as revenues and outbound freight expenses in
cost of sales. Certain prior year amounts have been reclassified to
conform with current year presentation.
GARDNER DENVER, INC.
BUSINESS SEGMENT RESULTS
(in thousands, except percentages)
(Unaudited)
Three Months Ended Year Ended
December 31, December 31,
% %
2000 1999 Change 2000 1999 Change
Compressed Air
Products
Revenues $84,558 $81,838 3 $321,720 $297,095 8
Operating
earnings 9,294 7,640 22 30,082 30,603 (2)
% of Revenues 11.0% 9.3% 9.4% 10.3%
Petroleum Products
Revenues 19,132 10,083 90 57,638 29,972 92
Operating
earnings 2,351 1,124 109 5,321 2,612 104
% of Revenues 12.3% 11.1% 9.2% 8.7%
CONDENSED BALANCE SHEET ITEMS
(Unaudited) % (Audited)
12/31/00 09/30/00 Change 12/31/99
Cash and equivalents $30,239 $18,291 65 $27,317
Receivables, net 79,448 81,102 (2) 72,272
Inventories, net 61,942 62,571 (1) 60,356
Current assets 179,916 171,462 5 166,379
Total assets 403,881 393,363 3 379,419
Short-term debt and
cur. maturities 5,781 5,298 9 5,289
Current liabilities 68,243 62,501 9 59,609
Long-term debt, ex.
cur. maturities 115,808 116,426 (1) 114,200
Total liabilities 232,733 228,434 2 226,810
Total stockholders'
equity 171,148 164,929 4 152,609
SOURCE Gardner Denver, Inc.
 back to top
Related links:
http://www.gardnerdenver.com
Company News On-Call:
http://www.prnewswire.com/comp/303875.html or fax,
800-758-5804, ext. 303875
CONTACT:
Philip R. Roth, Vice President, Finance and
Chief Financial Officer of Gardner Denver, Inc., 217-228-8205
|
