Revenues Grow 10% and EPS Increases 37% From Prior Year Quarter
QUINCY, Ill., July 25 /PRNewswire/ -- Gardner Denver, Inc. (NYSE: GDI), a
leading manufacturer of compressors and blowers for industrial applications
and pumps for petroleum and industrial markets, announced that revenues for
the three months ended June 30, 2001 were $104.6 million, an increase of 10%
compared to the second quarter of 2000. Diluted earnings per share in the
second quarter were $0.41, up 37% from a year ago, and included a $0.4 million
after-tax gain ($0.03 per share) from litigation settlement proceeds and a
$0.3 million after-tax gain ($0.02 per share) from interest income on a tax
settlement. Excluding the impact of these non-recurring items recorded in
other income, diluted earnings per share were $0.36, or 20% above the prior
year quarter.
Revenues for the three-month period increased $9.7 million, compared to
the same period of 2000. Petroleum products revenues increased $11.4 million,
or 87%, compared to last year's second quarter. This increase was driven by
strong drilling and well-stimulation pump sales as a result of continued high
oil and natural gas prices. Compressed air products revenues declined
$1.7 million, or 2%, due to declining U.S. industrial production which
weakened sales of domestic compressors and blowers. Unfavorable foreign
currency exchange rates also contributed to this decline, offsetting
incremental revenues from acquisitions.
Net income for the second quarter increased $1.8 million, to $6.4 million
compared to the prior year period. Diluted earnings per share increased to
$0.41 for the second quarter compared to $0.30 for the same period of 2000.
The increases in net income and diluted earnings per share are due to the
positive impact of increased leverage of the petroleum segment's fixed costs
on higher revenue volume, improved operational performance at our well
stimulation production facilities and the non-recurring items mentioned above.
Ross J. Centanni, Chairman, President and CEO said, "We are pleased with
our first half results and the continued resurgence of the petroleum products
segment. Orders and backlog in this segment have grown at triple digit levels
over prior year volumes due to our commitment to provide on-time, efficient
and reliable pumps to satisfy our customers' demand. As previously announced,
this commitment was recently rewarded with significant orders from Helmerich
and Payne totaling approximately $19 million."
"As expected, revenues of the compressed air products segment were
relatively flat with some deterioration in operating margin due to sales mix.
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 second half of 2000
and the first half of 2001 as the U.S. manufacturing sector continued to cut
production to cope with reduced demand. While waiting for a stronger
industrial economy, we will continue to integrate our existing acquisitions,
seek additional cost reductions and focus on optimizing operating cash flow
for use in potential future acquisitions," Centanni added.
With regard to the near term outlook, Centanni concluded by stating, "As a
result of the current petroleum and general industrial market conditions
mentioned earlier, our current expectations are that diluted EPS in the third
quarter should be in the range of $0.34 to $0.38. Our full-year 2001 diluted
EPS are currently expected to be in the range of $1.46 to $1.54."
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 and six month periods
ended June 30, 2001 and 2000 follow.
Gardner Denver will broadcast, through a live webcast, its conference call
to discuss second quarter earnings on Thursday, July 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 Six Months Ended
June 30, June 30,
% %
2001 2000 Change 2001 2000
Change
Revenues $104,554 $94,888 10 $205,450 $184,054 12
Costs and Expenses:
Cost of sales 73,307 66,687 10 144,761 129,594 12
Depreciation and
amortization 4,197 4,031 4 8,472 7,922 7
Selling and
administrative 16,625 15,275 9 33,274 30,728 8
Interest expense 1,547 1,959 (21) 3,389 3,776 (10)
Other income, net (1,350) (573) 136 (2,291) (1,858) 23
Income before
income taxes 10,228 7,509 36 17,845 13,892 28
Provision for
income taxes 3,784 2,861 32 6,602 5,293 25
Net income $6,444 $4,648 39 $11,243 $8,599 31
Basic earnings per
share $0.41 $0.30 37 $0.73 $0.56 30
Diluted earnings
per share $0.41 $0.30 37 $0.72 $0.56 29
Basic weighted
average number of
shares outstanding 15,545 15,310 15,499 15,261
Diluted weighted
average number of
shares outstanding 15,741 15,509 15,695 15,486
Shares outstanding as
of 6/30 15,567 15,306
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 Six Months Ended
June 30, June 30,
% %
2001 2000 Change 2001 2000 Change
Compressed Air
Products
Revenues $80,063 $81,775 (2) $159,984 $160,195 --
Operating
earnings 5,857 7,955 (26) 11,314 14,138 (20)
% of Revenues 7.3% 9.7% 7.1% 8.8%
Orders 77,551 74,775 4 160,175 154,512 4
Backlog 49,547 44,230 12 49,547 44,230 12
Petroleum Products
Revenues 24,491 13,113 87 45,466 23,859 91
Operating earnings 4,568 940 386 7,629 1,672 356
% of Revenues 18.7% 7.2% 16.8% 7.0%
Orders 35,553 14,962 138 62,853 28,608 120
Backlog 29,493 11,583 155 29,493 11,583 155
CONDENSED BALANCE SHEET ITEMS
(Unaudited) % (Audited)
6/30/01 03/31/01 Change 12/31/00
Cash and
equivalents $19,673 $19,700 -- $30,239
Receivables, net 77,201 79,103 (2) 79,448
Inventories, net 61,271 64,254 (5) 61,942
Current assets 167,290 171,932 (3) 179,916
Total assets 386,292 392,230 (2) 403,881
Short-term debt
and cur.
maturities 5,631 5,707 (1) 5,781
Current liabilities 63,001 63,381 (1) 68,243
Long-term debt,
excl. cur.
maturities 92,308 104,377 (12) 115,808
Total liabilities 202,200 214,958 (6) 232,733
Total stockholders'
equity 184,092 177,272 4 171,148
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:
Philip R. Roth, Vice President, Finance and
Chief Financial Officer of Gardner Denver, Inc., +1-217-228-8205
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