QUINCY, Ill., Feb. 11 /PRNewswire/ - Gardner Denver Machinery Inc.
(NYSE: GDI) reported its fourth consecutive year of revenue and operating
earnings growth. Revenues for 1997 increased 34% compared to 1996 and
operating earnings increased 60% in 1997 compared to the previous year. These
increases reflect continued expansion of the U.S. economy, favorable results
from three acquisitions completed in the last 18 months and significant growth
in demand for the Company's petroleum products. Since the Company's spin-off
in 1994, revenues have increased at a compounded rate of 18% per year and
operating earnings have increased at a compounded rate of 71% per year.
"The 1997 financial results reflect the Company's successful
implementation of its strategies for growth. We continue to utilize these
strategies to grow the business, streamline our operations and create value
for our shareholders," said Ross J. Centanni, President and CEO. "We look
forward to additional revenue and earnings growth in 1998 as we integrate two
acquisitions we completed in January, Champion Pneumatic and Geological
Equipment, and more fully realize the benefits of our acquisition of Tamrotor,
which we completed in June 1997."
Revenues were $291.5 million for the year ended December 31, 1997,
compared to $218.0 million for 1996. Approximately $48.7 million of this
increase is attributable to incremental revenues from three acquisitions which
the Company has completed since August 1996. Excluding incremental revenues
from acquisitions, revenues increased approximately $24.8 million (11%) for
the year, compared to 1996, due to significant growth in oil and gas well
drilling and servicing, and continued expansion of the U.S. economy which
strengthened demand for compressor products.
Revenues for the compressor products were $228.2 million for the year
ended December 31, 1997, compared to $188.0 million for 1996. Acquisitions
generated approximately $36.4 million of the $40.2 million increase. Revenues
for compressor products were negatively impacted in 1997 by the financial
crisis in Asia. Excluding the incremental benefit from acquisitions and the
impact of the Asian economy, revenues for this segment increased 4% in 1997
compared to the previous year. As a result of additional revenue volume and
improved manufacturing efficiencies, operating earnings for the segment
increased $8.2 million (27%) to $38.6 million, or 16.9% of compressor products
revenues.
Petroleum products revenues increased more than 111% to $63.3 million for
the year ended December 31, 1997, as compared to 1996. Incremental revenues
from acquisitions generated $12.3 million of the $33.3 million increase in
revenues. The remaining increase resulted from growth in oil and gas well
drilling and stimulation activity. The Company was able to leverage its
manufacturing operations and obtain significant price increases as a result of
the increased demand for petroleum products. Operating earnings for this
segment increased $11.0 million (485%) to $13.2 million for the year, or 20.9%
of petroleum products revenues.
Net income continued to demonstrate year-over-year growth, increasing
$10.7 million (64%) to $27.7 million in 1997, compared to $16.9 million for
the previous year. In 1997, net income included $0.7 million in after tax
income from LIFO inventory reductions, which was $0.5 million less than in
1996 since revenue growth led to less inventory reductions during 1997 than in
the previous year. Net income in 1997 also included $3.1 million in
incremental income from acquisitions. Excluding LIFO income and incremental
income from acquisitions, net income increased $8.2 million (49%) for the year
due to revenue growth and improvements in manufacturing operations. On a per
share basis, diluted earnings increased $0.63 (57%) to $1.74 in 1997, compared
to $1.11 in the previous year. Excluding LIFO income and incremental income
from acquisitions, diluted earnings per share increased $0.47 (46%) in 1997
compared to the previous year.
The Company generated more than $40 million in cash flow from operating
activities during 1997. These cash flows were used, among other activities,
to acquire Tamrotor and to repay debt. On December 31, 1997, total debt was
$51.7 million and cash and equivalents were $8.8 million.
For the fourth quarter of 1997, revenues increased $15.6 million (24%) to
$79.6 million compared to the same period of 1996. Approximately $9.6 million
of this increase is attributed to incremental revenues from acquisitions.
Excluding acquisitions, revenues increased 9.4% in the three month period
ending December 31 1997, compared to the same period of 1996. Compressor
products revenues were $62.4 million in the fourth quarter of 1997. Excluding
incremental revenues from acquisitions, compressor products revenues decreased
$1.2 million in the three month period of 1997, compared to the previous year,
due to the timing of specially-engineered package deliveries. Revenues for
petroleum products increased $7.2 million (72%) to $17.2 million in the three
month period of 1997 compared to the same period of 1996 due to increased
drilling and well servicing activity.
Net income grew $2.9 million (52%) for the quarter ended December 31, 1997
to $8.5 million. Approximately $0.7 million of this increase is the
incremental benefit of acquisitions. Excluding LIFO income and incremental
income from acquisitions, net income increased $2.7 million (48%) for the
quarter ended December 31, 1997, compared to the previous year. For the three
month period, diluted earnings per share increased $0.17 (47%) to $0.53 in
1997, compared to the previous year. Excluding LIFO income and incremental
income from acquisitions, diluted earnings per share increased $0.16 (57%) to
$0.44 in the fourth quarter of 1997, as compared to $0.28 in the same period
of 1996.
Comparisons of the financial results for the three and twelve month
periods ended December 31, 1997 and December 31, 1996 appear on the following
pages.
Gardner Denver 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 MACHINERY INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands except per share data)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
% %
1997 1996 Change 1997 1996 Change
Revenues $79,574 $63,998 24 $291,547 $218,000 34
Costs and Expenses:
Cost of sales 50,712 41,682 22 191,617 148,191 29
Depreciation and
amortization 2,598 2,200 18 9,662 8,097 19
Selling and
administrative 11,186 9,489 18 39,938 30,169 32
Interest expense 789 1,104 (29) 3,937 3,104 27
Other, net 112 242
Income before
income taxes 14,177 9,523 49 46,151 28,439 62
Provision for
income taxes 5,628 3,904 44 18,500 11,533 60
Net income $8,549 $5,619 52 $27,651 $16,906 64
Basic earnings
per share $ 0.56 $ 0.38 47 $ 1.84 $ 1.16 59
Diluted earnings
per share $ 0.53 $ 0.36 47 $ 1.74 $ 1.11 57
GARDNER DENVER MACHINERY INC.
BUSINESS SEGMENT RESULTS
(in thousands except percentages)
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
% %
1997 1996 Change 1997 1996 Change
Compressed Air Products
Revenues $ 62,362 $ 53,998 15 $228,214 $188,027 21
Operating earnings 11,606 9,090 28 38,554 30,399 27
% of Revenues 18.6% 16.8% 16.9% 16.2%
Petroleum Products
Revenues 17,212 10,000 72 63,333 29,973 111
Operating earnings 3,864 1,864 107 13,211 2,258 485
% of Revenues 22.4% 18.6% 20.9% 7.5%
SOURCE Gardner Denver Machinery, Inc.
 back to top
Related links:
http://www.gardnerdenver.com
CONTACT:
Helen W. Cornell, Vice President, Corporate
Secretary and Treasurer of Gardner Denver, 217-228-8209
CNOC: http://www.prnewswire.com or fax, 800-758-5804, ext.
303875
|
