QUINCY, Ill., April 24 /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 for the three months ended March 31, 2002 were $106.6 million, a
6% increase compared to $100.9 million in the first quarter of 2001. Diluted
earnings per share in the first quarter of 2002 were $0.29, down 6% compared
to the first quarter of 2001.
First Quarter Results
Revenues for the three-month period increased $5.7 million compared to the
same period of 2001. Compressed Air Products revenues, including
$24.2 million from acquisitions, increased $14.2 million, or 19%, for the
three months of 2002, compared to 2001. Excluding acquisitions, the decline
in Compressed Air Products revenues is primarily attributable to the softness
in the overall U.S. economy (exacerbated by the impact of the September 11th
attack) which weakened demand for domestic compressors and blowers.
Unfavorable foreign currency exchange rates also contributed to the decline.
Pump Products revenues for the three-month period decreased approximately
$8.5 million, or 32%, compared to the same period of 2001. This decrease
resulted primarily from depressed demand for petroleum pumps due to lower oil
and natural gas prices in the second half of 2001.
Net income was $4.6 million for the first three months of 2002, compared
to $4.8 million in 2001. Diluted earnings per share decreased 6% to $0.29 for
the first quarter of 2002, compared to $0.31 for the same period of 2001. Net
income and diluted earnings per share in the first quarter of 2001 included a
$0.5 million after-tax gain ($0.03 per share) from litigation settlement
proceeds and $0.9 million after-tax ($0.06 per share) expense for goodwill
amortization. Excluding these two non-recurring items, net income for the
first quarter of 2001 would have been $5.2 million and diluted earnings per
share in the first quarter of 2001 would have been $0.34.
CEO's Comments Regarding First Quarter Results
"Given the current economic conditions, which are adversely impacting both
the Compressed Air Products and Pump Products segments, we were very pleased
with our first quarter results," stated Ross J. Centanni, Chairman, President
and CEO.
"Excluding acquisitions, revenues decreased in both operating segments.
Given the relatively high fixed cost structure inherent in these businesses,
de-leverage due to lower volume adversely affected profitability. We were
able to largely offset this de-leveraging impact through tight controls on
spending. As a result of these efforts, operating margins for the Compressed
Air Products segment improved sequentially in the first quarter of 2002 as
compared to the fourth quarter of 2001, even after adjusting for goodwill
amortization expense in the fourth quarter of 2001. Reported selling and
administrative costs increased 20%, due solely to the impact of our
acquisitions. Excluding acquisitions, these expenses decreased approximately
5% compared to the first quarter of 2001."
"We have also made significant progress in integrating the Belliss &
Morcom and Hoffman acquisitions which were made last September. We
consolidated Belliss' two U.K. sales and administrative offices into one
facility and integrated their U.S. operations into existing Gardner Denver
facilities. Manufacturing previously done at Hoffman's Syracuse facility has
been transferred to our Georgia operation. These efforts should result in
cost reductions in the second half of 2002."
"We continue to generate strong operating cash flow, which was
approximately $4.5 million for the quarter. This compares favorably to the
$1.8 million cash flow in the first quarter of 2001. These favorable cash
flows were used to pay down $7.5 million in debt and position us to continue
to pursue acquisitions."
Outlook
Looking forward, Mr. Centanni stated, "Prior to the tragic events of
September 11, 2001, we would have expected demand for our compressed air
products to have improved in the first quarter of 2002. We now believe that
the current adverse economic conditions affecting the Company will continue
until at least the end of the second quarter. We do, however, see some
positive signs that may bode well for a pick up as we move into the second
half of the year. Order rates have improved somewhat for some lower
horsepower compressors and certain positive displacement blowers, typically
sold into the service sector of the economy. Also, if the recent higher
levels of natural gas and oil prices continue, demand for oil well servicing
and drilling could return to higher levels, stimulating demand for our
petroleum pumps."
Based on these observations, the Company anticipates that diluted earnings
per share in the second quarter will be approximately $.30 to $.35 and $1.40
to $1.60 for the full year.
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-month periods ended
March 31, 2002 and 2001 follow.
Gardner Denver will broadcast, through a live webcast, its conference call
to discuss first quarter earnings on Thursday, April 25, 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
March 31,
%
2002 2001 Change
Revenues $106,609 $100,896 6
Costs and Expenses:
Cost of sales 74,602 71,454 4
Depreciation and amortization 3,548 4,275 (17)
Selling and administrative 19,972 16,649 20
Interest expense 1,682 1,842 (9)
Other income, net (132) (941) (86)
Income before income taxes 6,937 7,617 (9)
Provision for income taxes 2,359 2,818 (16)
Net income $4,578 $4,799 (5)
Basic earnings per share $0.29 $0.31 (6)
Diluted earnings per share $0.29 $0.31 (6)
Basic weighted average
number of shares outstanding 15,757 15,452
Diluted weighted average
number of shares outstanding 15,997 15,648
Shares outstanding as of 3/31 15,815 15,528
GARDNER DENVER, INC.
BUSINESS SEGMENT RESULTS
(in thousands, except percentages)
(Unaudited)
Three Months Ended
March 31,
%
2002 2001 Change
Compressed Air Products
Revenues $88,511 $74,279 19
Operating earnings 7,340 5,407(A) 36
% of Revenues 8.3% 7.3%
Orders 85,552 77,022 11
Backlog 56,189 49,011 15
Pump Products
Revenues 18,098 26,617 (32)
Operating earnings 1,147 3,111(A) (63)
% of Revenues 6.3% 11.7%
Orders 13,386 32,902 (59)
Backlog 15,828 20,855 (24)
(A) As a result of adopting SFAS 142, periodic goodwill amortization
ceased effective January 1, 2002. Operating earnings for the quarter-
ended March 31, 2001, excluding goodwill amortization expense, would
have been $6,312 and $3,301 for the Compressed Air Products and Pump
Products segments, respectively.
CONDENSED BALANCE SHEET ITEMS
(Unaudited) (Audited) %
03/31/02 12/31/01 Change
Cash and equivalents $24,771 $29,980 (17)
Receivables, net 80,733 85,538 (6)
Inventories, net 74,575 76,650 (3)
Current assets 191,284 201,135 (5)
Total assets 476,242 488,688 (3)
Short-term debt and
curr. maturities 7,500 7,375 2
Current liabilities 74,940 84,577 (11)
Long-term debt,
excl. curr. maturities 152,587 160,230 (5)
Total liabilities 272,591 289,960 (6)
Total stockholders' equity 203,651 198,728 2
SOURCE Gardner Denver, Inc.
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Related links:
http://www.gardnerdenver.com
Company News On-Call:
http://www.prnewswire.com/gh/cnoc/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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