QUINCY, Ill., July 22 /PRNewswire/ -- Gardner Denver, Inc. (NYSE: GDI)
reported diluted earnings per share of $0.55 in the quarter ending June 30,
1998, an increase of 28% from the $0.43 reported a year ago. Second quarter
earnings per share have grown at a compounded rate of 48% per year since 1995,
the Company's first full year of operation after its spin-off. For the six
month period, diluted earnings per share increased 35% to $1.04, compared to
the same period of 1997.
"During the second quarter of 1998, the Company noted improved demand for
petroleum products, with orders increasing 60% compared to the previous
quarter, and more than 45% compared to the same period of 1997, excluding
recently acquired operations. Backlog for this segment has more than doubled
from the June 30, 1997 level of $10.6 million to $28.2 million (including
$3.0 million from acquisitions), but declined somewhat from the March 31, 1998
level of $31.0 million, as a result of recent reductions in the price of oil.
Future increases in demand for petroleum products is dependent upon further
appreciation in oil and natural gas prices," said Ross J. Centanni, President
and CEO. "As a result of strong economic growth in the U.S. over the previous
twelve months, backlog for compressor products increased to $51.1 million as
of June 30, 1998 (including $4.7 million from acquisitions), from
$43.5 million as of June 30, 1997. In the U.S., orders for compressor
products declined somewhat in the second quarter of 1998 compared to the same
period of 1997 and to the first quarter of 1998, as a result of uncertainty
concerning the economy's rate of future growth. This decrease in orders
resulted in a reduction in backlog as of June 30, 1998, compared to
$55.4 million as of March 31, 1998 (including $1.2 million from acquisitions).
However, we are pleased to report increasing demand for compressor products in
Europe, as a result of improving economic conditions in this region and we
look forward to additional revenue and earnings growth in 1998 as we begin to
reap synergistic benefits of the integration of four acquisitions made since
June 30, 1997."
Year-over-year revenue growth was achieved in the quarter through
increased petroleum product sales and revenues from newly acquired
operations. For the three months ended June 30, 1998, revenues were $103.5
million, compared to $69.4 million in the same period of 1997. Approximately
$26.5 million of this increase is attributable to incremental revenues from
acquisitions which the Company has completed since June 1997. Excluding
incremental revenues from acquisitions, revenues increased approximately $7.6
million (11%) for the quarter, compared to the same period of 1997.
Revenues for compressor products increased $23.9 million (44%) to
$78.1 million for the quarter ended June 30, 1998, compared to $54.2 million
for the same period of 1997 as a result of incremental revenues from
acquisitions. As a percentage of revenues, operating margin for this segment
declined to 13.7% for the three months ended June 30, 1998, compared to 17.1%
for the same period of 1997, primarily because newly acquired operations
currently generate a lower operating margin (after amortization of goodwill
associated with the acquisition) than that of the Company's existing
operations and because the Company is incurring expenses related to a plant
relocation, which is planned to occur in the fourth quarter of 1998.
Petroleum products revenues increased 66% to $25.4 million for the quarter
ended June 30, 1998, compared to the same period of 1997. Incremental
revenues from acquisitions generated $2.5 million of the $10.1 million
increase in revenues. The remaining increase resulted primarily as a result
of growth in oil and gas well drilling and stimulation over the last eighteen
months. The Company has been able to leverage its manufacturing operations
and administrative expenses, and obtain significant price increases in this
business segment as a result of the increased demand for petroleum products.
Compared to the same period of 1997, operating earnings for this segment
increased $3.0 million (90%) to $6.2 million for the second quarter of 1998,
to 24.6% of petroleum products revenues.
Revenues increased $57.8 million (43%) to $193.3 million for the six
months ended June 30, 1998, compared to the same period of 1997. Incremental
revenues from acquisitions contributed $42.5 million of this increase.
Excluding acquisitions, revenues increased $15.3 million (11%) over the same
period of 1997.
For the six months ended June 30, 1998, revenues for compressor products
increased $41.5 million (39%) to $148.1 million, compared to the same period
of 1997. Excluding acquisitions, which contributed $37.7 million, revenues
increased $3.8 million (4%), primarily related to growth in the U.S. economy
and penetration of niche markets such as field gas gathering. Petroleum
products revenues increased $16.3 million (56%) in the six months ended June
30, 1998, compared to the same period of 1997. An acquisition contributed
$4.8 million of this increase. Excluding this acquisition, revenues increased
$11.5 million (40%), primarily as a result of increased drilling activity over
the last eighteen months.
Net income continued to demonstrate year-over-year growth, increasing
$2.4 million (35%) for the quarter ended June 30, 1998, to $9.2 million ($0.55
diluted earnings per share), compared to $6.8 million ($0.43 diluted earnings
per share) in the previous year. In the three months ended June 30, 1998, net
income included $0.5 million ($0.03 diluted earnings per share) in incremental
income from acquisitions. Excluding the incremental income from acquisitions,
net income increased $1.9 million (28%) for the quarter, a $0.09 diluted
earnings per share improvement, primarily due to revenue growth, price
increases for petroleum products and leverage of manufacturing costs and
administrative expenses as volume increases.
For the six months ended June 30, 1998, net income increased $5.1 million
(42%) to $17.3 million ($1.04 diluted earnings per share), compared to
$12.1 million ($0.77 diluted earnings per share) for the same period of 1997.
Acquisitions provided $1.1 million ($0.07 diluted earnings per share) of the
net income increase in the six month period of 1998.
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. Such forward-looking
statements are subject to uncertainties and factors relating to the Company's
operations and business environment, all of which are difficult to predict and
many of which are beyond the control of the Company, that could cause actual
results of the Company to differ materially from those matters expressed in or
implied by such forward-looking statements. The following factors, among
others, could affect its future performance and cause actual results of the
Company to differ materially from those expressed in or implied by forward-
looking statements: the successful integration of recent acquisitions; the
level of oil and gas drilling and production, which affects demand for the
Company's petroleum products; pricing of Gardner Denver products; changes in
the industrial production and industrial capacity utilization rates, which
affects demand for the Company's compressor products; and the degree to which
the Company is able to penetrate niche markets.
Comparisons of the financial results for the three and six month periods
ended June 30, 1998 and June 30, 1997 appear on the following pages.
Gardner Denver, with 1997 revenues of $292 million, is a leading
manufacturer of air compressor and blower products for various industrial
applications and pumps used in oil and gas production, and well servicing,
drilling and stimulation. Gardner Denver's news releases are available by fax
by calling 800-758-5804, extension 303875, or by visiting the Company's home
page on the Internet (http://www.gardnerdenver.com).
GARDNER DENVER, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except per share amounts and percentages)
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
% %
1998 1997 Change 1998 1997 Change
Revenues $103,509 $69,447 49 $193,301 $135,522 43
Costs and Expenses:
Cost of sales 70,131 45,743 53 129,529 90,196 44
Depreciation and
amortization 3,221 2,190 47 6,116 4,450 37
Selling and
administrative 13,738 9,292 48 26,692 18,653 43
Interest expense 1,386 936 48 2,565 1,913 34
Other expense 123 278
Income before
income taxes 14,910 11,286 32 28,121 20,310 38
Provision for
income taxes 5,710 4,473 28 10,840 8,173 33
Net income $9,200 $6,813 35 $17,281 $12,137 42
Basic earnings
per share $ 0.57 $ 0.45 27 $ 1.08 $ 0.81 33
Diluted earnings
per share $ 0.55 $ 0.43 28 $ 1.04 $ 0.77 35
Diluted weighted
average number
of shares
outstanding 16,708 15,799 16,680 15,739
GARDNER DENVER, INC.
(in thousands, except percentages)
BUSINESS SEGMENT RESULTS
(Unaudited) (Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
% %
1998 1997 Change 1998 1997 Change
Compressed Air Products
Revenues $78,086 $54,161 44 $148,116 $106,586 39
Operating earnings 10,684 9,260 15 21,362 17,600 21
% of Revenues 13.7% 17.1% 14.4% 16.5%
Petroleum Products
Revenues 25,423 15,286 66 45,185 28,936 56
Operating earnings 6,247 3,296 90 10,659 5,304 101
% of Revenues 24.6% 21.6% 23.6% 18.3%
CONDENSED BALANCE SHEET ITEMS
(Unaudited) (Audited)
6/30/98 3/31/98 12/31/97
Cash and equivalents $11,546 $11,969 $8,831
Receivables, net 86,507 81,553 62,307
Inventories, net 62,617 64,782 48,324
Accounts payable and
accrued liabilities 69,918 78,320 58,471
Debt (includes current
maturities) 90,340 87,520 51,686
SOURCE Gardner Denver, Inc.
 back to top
Related links:
http://www.gardnerdenver.com
Company News On-Call: http://www.prnewswire.com or
fax, 800-758-5804, ext. 303875
CONTACT:
Helen W. Cornell, Vice President, Corporate
Secretary and Treasurer of Gardner Denver, 217-228-8209
|
