Revenues Grow 13% and EPS Increases 19% from Prior Year
QUINCY, Ill., April 25 /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
for the three months ended March 31, 2001 were $100.9 million. Diluted
earnings per share in the first quarter of 2001 were $0.31 including a
$0.5 million after-tax gain from litigation settlement proceeds. Excluding
the impact of this non-operating item, diluted earnings per share were $0.28.
Revenues for the three-month period increased $11.7 million, or 13%,
compared to the same period of 2000. Petroleum revenues for the three-month
period increased approximately $10.2 million, or 95%, compared to the same
period of 2000. This increase resulted from heightened demand for petroleum
products due to continued high oil and natural gas prices. Compressor
products revenues increased $1.5 million, or 2%, for the three months of 2001,
compared to 2000, as a result of the incremental revenues from acquisitions
and increased rotary screw compressor volume in Europe partially offset by
unfavorable foreign currency exchange rates. Net income was $4.8 million for
the first three months of 2001 compared to $4.0 million in 2000. Diluted
earnings per share increased 19% to $0.31 for the first quarter compared to
$0.26 for the same period of 2000.
"We are pleased with our first quarter results and the momentum building
in our petroleum products segment," stated Ross J. Centanni, Chairman,
President and CEO. "As anticipated, orders for well servicing and drilling
pumps continued to improve during the first quarter. Orders and backlog for
this segment have doubled from their levels a year ago. This increased
activity has boosted the petroleum products segment's backlog an additional
54% since December 31, 2000. We believe this positive trend will continue if
oil and natural gas prices remain near current levels, day rates and the rig
count continue to increase and recent economic slowdowns do not significantly
impact oil and natural gas demand."
"As expected, orders for compressed air products showed only modest growth
during the first quarter of 2001 as compared to the previous year. Because
compressed air is often used as a fourth utility in the manufacturing process,
demand for compressors is correlated to manufacturing capacity utilization
rates and the rate of change of industrial equipment production. These
indicators, along with the GDP, weakened during the latter half of 2000 and in
early 2001 as the U.S. manufacturing sector continued to cut production to
cope with reduced demand. While waiting for a stronger industrial economy, we
continue to expect additional synergies and cost reductions for compressed air
products as we further integrate acquisitions, penetrate global markets and
realize returns from our capital investments," Centanni concluded.
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; and the continued successful implementation of cost
reduction efforts.
Comparisons of the financial results for the three month periods ended
March 31, 2001 and 2000 follow.
Gardner Denver will broadcast, through a live webcast, its conference call
to discuss first quarter earnings on Thursday, April 26, 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
March 31,
%
2001 2000 Change
Revenues $100,896 $89,166 13
Costs and Expenses:
Cost of sales 71,454 62,907 14
Depreciation and amortization 4,275 3,891 10
Selling and administrative 16,649 15,453 8
Interest expense 1,842 1,817 1
Other income, net (941) (1,284) (27)
Income before income taxes 7,617 6,382 19
Provision for income taxes 2,818 2,431 16
Net income $4,799 $3,951 21
Basic earnings per share $0.31 $0.26 19
Diluted earnings per share $0.31 $0.26 19
Basic weighted average
number of shares outstanding 15,452 15,213
Diluted weighted average
number of shares outstanding 15,648 15,464
Shares outstanding as of 3/31 15,528 15,297
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. In addition, the Company currently allocates all costs
related to corporate activity to its segments and calculates their
operating earnings presented in the Business Segment Results based on
income before interest expense, other income, net and income taxes.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
March 31,
%
2001 2000 Change
Compressed Air Products
Revenues $79,922 $78,420 2
Operating earnings 5,459 6,184 (12)
% of Revenues 6.8% 7.9%
Orders 82,624 79,737 4
Backlog 51,516 50,095 3
Petroleum Products
Revenues 20,974 10,746 95
Operating earnings 3,059 731 318
% of Revenues 14.6% 6.8%
Orders 27,300 13,643 100
Backlog 18,350 9,558 92
CONDENSED BALANCE SHEET ITEMS
(Unaudited) (Audited) %
03/31/01 12/31/00 Change
Cash and equivalents $19,700 $30,239 (35)
Receivables, net 79,103 79,448 0
Inventories, net 64,254 61,942 4
Current assets 171,932 179,916 (4)
Total assets 392,230 403,881 (3)
Short-term debt and curr. maturities 5,707 5,781 (1)
Current liabilities 63,381 68,243 (7)
Long-term debt, excl. curr.
maturities 104,377 115,808 (10)
Total liabilities 214,958 232,733 (8)
Total stockholders' equity 177,272 171,148 4
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 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
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