exv99w1
Exhibit 99.1
PRESS RELEASE
FOR IMMEDIATE RELEASE
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April 20, 2011
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Contact: Michael M. Larsen |
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Vice President and CFO |
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(610) 249-2002 |
GARDNER DENVER, INC. DELIVERS RECORD FIRST QUARTER 2011 FINANCIAL RESULTS
Company Reports Record-Level Quarterly Revenues, Orders, Backlog and Operating Income and
Highest First Quarter Net Income and DEPS in Company History
Company Highlights (Attributable to Gardner Denver):
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Diluted Earnings per Share (DEPS) were $1.13 for the first quarter of 2011, inclusive
of profit improvement costs and other items totaling $0.02, an increase of 85% compared to
$0.61 in the first quarter of 2010. |
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Strong first quarter growth, with orders of $611.9 million and revenues of $531.9
million, both up 26% compared to the first quarter of the prior year. |
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Operational improvements contribute to 510 basis points of operating margin expansion to
16.3%. |
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Backlog ended the quarter at $647.1 million, an increase of $207.2 million (47.1%) from
the first quarter of 2010 and $93.6 million (16.9%) from year end. |
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Updated guidance for 2011: second quarter DEPS of $1.10 to $1.15 and total year DEPS of
$4.50 to $4.60, including profit improvement costs and other items totaling $0.05 per
diluted share for the second quarter and $0.10 per diluted share for the full year. |
WAYNE, PA (April 20, 2011) Gardner Denver, Inc. (NYSE: GDI) today announced that revenues and
operating income for the three months ended March 31, 2011 were $531.9 million and $86.8 million,
respectively, which are record quarterly results for the Company. For the first quarter of 2011,
net income and DEPS attributable to Gardner Denver were $59.5 million and $1.13, respectively,
which are the highest levels achieved by the Company for any first quarter in its history. The
three-month period of 2011 included expenses for profit improvement initiatives and other items
totaling $1.7 million, or $0.02 DEPS.
Compared to the three-month period of 2010, revenues and orders both increased 26 percent. Demand
for Engineered Products remained strong, with the most significant increases resulting from greater
demand for petroleum pump products, engineered packages destined for emerging markets and OEM
products. Demand for Industrial Products was broad-based, growing by double-digits in every major
region of the world. Consolidated operating income improved 83 percent compared to the three-month
period of the prior year, increasing to $86.8 million from $47.5 million in 2010. Operating income
as a percentage of revenues was 16.3 percent in the three-month period of 2011, compared to 11.2
percent in the prior year period. The increase in operating income was largely driven by
incremental profitability on the revenue growth, favorable product mix and the benefits of
operational improvements previously implemented.
1
CEOs Comments
I am very pleased with the record-breaking financial results achieved by the Company in the first
quarter, reflecting strong organic growth in our end markets and solid execution by our employees
worldwide, supported by the principles of the Gardner Denver Way, said Barry L. Pennypacker,
Gardner Denvers President and Chief Executive Officer. Our global teams remain focused on the
Companys five strategic priorities and driving operational excellence throughout the organization.
These improvements were evident in the first quarter, as operating margins expanded by 510 basis
points compared to the prior year, with outstanding results in both of our reportable segments.
The Industrial Products Group achieved its eighth consecutive quarter of increased operating
margins to 11.3 percent (as adjusted to exclude the impact of impairment charges, expenses for
profit improvement initiatives and other items), sustaining its great progress toward our goal of
14 percent by 2014. The Engineered Products Group also delivered outstanding growth, doubling
operating income in the first quarter of 2011, compared with the same period of 2010.
The Company is well-positioned for continued organic growth. We continue to invest resources in
our manufacturing facilities and are expanding our presence in key emerging markets and attractive
end markets such as energy, medical, environmental and food and beverage. Furthermore, we continue
to make progress on growing aftermarket revenues, with a particular focus on key end markets such
as energy and infrastructure and expanding our service capabilities worldwide, as evidenced by our
decision to invest in a new world class aftermarket facility for petroleum pumps in Fort Worth,
Texas.
Mr. Pennypacker continued, In the first quarter of 2011, cash provided by operating activities was
more than $47 million, compared to $27 million in the same period of 2010. We invested $8.0
million in capital expenditures in the first three months of 2011, with a focus on increasing
production output to meet strong demand from our customers and reducing costs. We anticipate total
capital expenditures will be approximately $45 million in 2011, reflecting continued investments in
growth initiatives and margin expansion projects on the shop floor. Our balance sheet and cash
generation remains strong, and we will continue to be selective in our acquisitions if the
appropriate opportunities become available.
Other Corporate Developments
Gardner Denver also announced today that it has reached an agreement with the minority shareholders
of its two joint ventures in China, Shanghai CompAir Compressor Co. Ltd. (SCCC) and Shanghai
CompAir-Dalong High Pressure Equipment Co. Ltd. (SCDL), to acquire all of their equity interests
in the joint ventures. The noncontrolling interests held by the minority shareholders of SCCC and
SCDL are 49 percent and 40 percent, respectively, of the outstanding share capital of the entities.
The purchase price for the noncontrolling interests is RMB 122 million (approximately $18.7
million) and will be paid with Gardner Denvers existing cash on hand in China.
Gardner Denver is currently the majority shareholder of the two joint ventures and includes their
total results in the Companys consolidated financial statements, with a reduction to net income
attributable to Gardner Denver for the earnings attributable to the noncontrolling interests. The
transaction is expected to increase DEPS attributable to Gardner Denver common stockholders in the
second half of 2011 by approximately $0.02.
2
The transaction remains subject to various regulatory approvals and is expected to close in the
third quarter of 2011.
In addition, Gardner Denver announced during the first quarter of 2011 that it had issued notice to
redeem all $125.0 million in the aggregate principal amount of its outstanding 8% senior
subordinated notes due 2013 (the Notes). The Notes will be redeemed on May 2, 2011 at a
redemption price equal to 100 percent of the principal amount thereof, plus accrued and unpaid
interest. The Company plans to finance the redemption using available cash and borrowings under
its revolving credit facility.
Outlook
Mr. Pennypacker stated, For the remainder of 2011, we expect that capacity utilization will
continue to improve gradually, which will drive demand for the products and services of our
Industrial Products Group, particularly replacement opportunities. As capacity utilization grows,
we are optimistic that we will see expansion of customer plants that will drive demand for the
Industrial Products Groups compressors and vacuum products.
Our backlog for the Engineered Products segment has improved in the past two quarters, giving us
better visibility into the demand for the balance of 2011. We anticipate demand for well servicing
pumps and aftermarket fluid ends to remain strong in 2011, compared to 2010, and we are continuing
to invest in production capacity to meet these growing requirements. We are expecting a stable rig
count for the remainder of 2011 and shipments of drilling pumps to remain steady.
Mr. Pennypacker stated, Based on this economic outlook, our existing backlog and productivity
improvement plans, we are projecting the second quarter 2011 DEPS attributable to Gardner Denver to
be in a range of $1.10 to $1.15 and are raising our full-year 2011 DEPS range to $4.50 to $4.60.
This projection includes profit improvement costs and other items totaling $0.05 per diluted share
for the second quarter of 2011 and $0.10 per diluted share for the full-year 2011. Second quarter
2011 DEPS attributable to Gardner Denver, adjusted to exclude profit improvement costs and other
items, are expected to be in a range of $1.15 to $1.20. The midpoint of the adjusted DEPS range
for the second quarter of 2011 ($1.18) represents a 62 percent increase over the same period of
2010. Full-year 2011 DEPS attributable to Gardner Denver, adjusted to exclude profit improvement
costs and other items, are expected to be in a range of $4.60 to $4.70. The midpoint of the new
adjusted DEPS range for the full-year 2011 ($4.65) represents a 37 percent increase over 2010
results and a 13 percent increase from the full-year 2011 guidance previously issued.
The Companys DEPS guidance is inclusive of the accretion expected from the acquisition of the
noncontrolling equity interests in the Companys joint ventures in China as well as reduced
interest expense resulting from the redemption of the Companys Notes. The effective tax rate
assumed in the DEPS guidance for 2011 is 28 percent.
3
First Quarter Results
Revenues increased $109.7 million (26 percent) to $531.9 million for the three months ended March
31, 2011, compared to the same period of 2010. Organically, order and revenue growth were 24
percent and 23 percent, respectively, in the first quarter of 2011, compared to the prior year
period.
Orders and revenues for the Industrial Products segment both increased 16 percent in the first
quarter, compared to the same period of 2010, reflecting on-going improvement in demand for OEM
products, compressors and aftermarket parts and services. The segment experienced double-digit
growth in each of the major regions of the world, with particular strength in the Americas and
Asia. In the first quarter of 2011, favorable changes in foreign currency exchange rates increased
orders and revenues for the Industrial Products segment by 2 percent. Organically, this segment
generated order and revenue growth of 14 percent in the first quarter of 2011, compared to the
prior year period. See Selected Financial Data Schedule at the end of this press release.
Engineered Products segment orders and revenues increased 39 percent and 40 percent, respectively,
for the three months ended March 31, 2011, compared to the same period of 2010, reflecting strong
demand for drilling and well servicing pumps and medical OEM products. In the first quarter of
2011, favorable changes in foreign currency exchange rates increased orders and revenues for the
Engineered Products segment by 1 percent. The ILMVAC acquisition, completed in the third quarter
of 2010, increased orders and revenues by 2 percent and 3 percent, respectively. Organically, this
segment generated both order and revenue growth of 36 percent in the first quarter of 2011,
compared to the prior year period. See Selected Financial Data Schedule at the end of this press
release.
Gross profit increased $50.6 million (38 percent) to $184.5 million for the three months ended
March 31, 2011, compared to the same period of 2010, primarily as a result of volume improvements,
favorable product mix, cost reductions and favorable changes in foreign currency exchange rates.
Gross margin increased to 34.7 percent in the three months ended March 31, 2011, from 31.7 percent
in the same period of 2010. The increase in gross margin was due to the benefits of operational
improvements, cost reductions, volume leverage and favorable product mix.
Selling and administrative expenses increased $8.3 million to $96.0 million in the three-month
period ended March 31, 2011, compared to the same period of 2010, primarily due to increases in
compensation and benefit expenses and unfavorable changes in foreign currency exchange rates ($1.2
million), partially offset by cost reductions. The ILMVAC acquisition, completed in the third
quarter of 2010, added $1.0 million to selling and administrative expenses
in the first quarter of 2011. As a percentage of revenues, selling and administrative expenses
improved 270 basis points to 18.1 percent for the three-month period ended March 31, 2011, compared
to the same period of 2010.
Depreciation and amortization expense was $14.9 million for the three-month period of 2011 and
$15.6 million in the three-month period of 2010.
4
Operating income, as adjusted to exclude the net impact of expenses incurred for profit improvement
initiatives and other items ($1.7 million) (Adjusted Operating Income) for the three-month period
ended March 31, 2011 was $88.5 million, compared to $48.5 million in the prior year period.
Adjusted Operating Income as a percentage of revenues improved to 16.6 percent from 11.5 percent in
the three-month period of 2010. DEPS attributable to Gardner Denver, as adjusted for the impact of
profit improvement costs and other items (Adjusted DEPS) for the three-month period ended March
31, 2011, were $1.15, compared to $0.62 in the three-month period of 2010. Adjusted Operating
Income, on a consolidated and segment basis and Adjusted DEPS are both financial measures that are
not in accordance with generally accepted accounting principles in the U.S. (GAAP). See
Reconciliation of Operating Income and DEPS to Adjusted Operating Income and Adjusted DEPS at the
end of this press release. Gardner Denver believes the non-GAAP financial measures of Adjusted
Operating Income and Adjusted DEPS provide important supplemental information to both management
and investors regarding financial and business trends used in assessing its results of operations.
Gardner Denver believes excluding the specified items from operating income and DEPS provides a
more meaningful comparison to the corresponding reported periods and internal budgets and
forecasts, assists investors in performing analysis that is consistent with financial models
developed by investors and research analysts, provides management with a more relevant measurement
of operating performance and is more useful in assessing management performance.
Adjusted Operating Income for the Industrial Products segment in the first quarter of 2011 was
$32.2 million and segment Adjusted Operating Income as a percentage of revenues was 11.3 percent.
By comparison, Adjusted Operating Income for the Industrial Products segment was $20.5 million, or
8.3 percent of revenues, in the three-month period of 2010. Segment operating income(1)
and segment operating margin(1), as reported under GAAP, for the Industrial Products
segment for the three months ended March 31, 2011 were $30.8 million and 10.8 percent,
respectively. Segment operating income (1) and segment operating margin(1)
for the Industrial Products segment, as reported under GAAP, for the three months ended March 31,
2010 were $19.6 million and 7.9 percent of revenues, respectively. The improvement in Adjusted
Operating Income for this segment was primarily attributable to incremental profit on revenue
growth and cost reductions. See the Selected Financial Data Schedule and the Reconciliation of
Operating Income and DEPS to Adjusted Operating Income and Adjusted DEPS at the end of this press
release.
Adjusted Operating Income for the Engineered Products segment for the first quarter of 2011 was
$56.3 million and segment Adjusted Operating Income as a percentage of revenues was 22.9 percent.
Adjusted Operating Income for the
Engineered Products segment in the three-month period of 2010 was $28.0 million, or 16.0 percent of
revenues. Segment operating income(1), as reported under GAAP, for the Engineered
Products segment for the three months ended March 31, 2011 was $56.0 million and segment operating
margin(1) was 22.8 percent, compared to $27.9 million and 15.9 percent, respectively, in
the same period of 2010. The improvement in Adjusted Operating Income for this segment was
primarily attributable to incremental profitability on revenue growth, favorable product mix and
cost reductions. See the Selected Financial Data Schedule and the Reconciliation of Operating
Income and DEPS to Adjusted Operating Income and Adjusted DEPS at the end of this press release.
5
The provision for income taxes for the three months ended March 31, 2011 increased $12.8 million to
$22.5 million, compared to the same period of 2010. The effective tax rates for the three-month
periods of 2011 and 2010 were 27 percent and 23 percent, respectively.
Net income attributable to Gardner Denver for the three months ended March 31, 2011 increased $27.5
million to $59.5 million, compared to $32.0 million in the same period of 2010. Diluted earnings
per share attributable to Gardner Denver for the three months ended March 31, 2011 were $1.13,
compared to $0.61 for the same period of the previous year.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties.
Forward-looking statements generally can be identified by the use of forward-looking terminology
such as could, should, anticipate, expect, believe, will, project, lead, or the
negative thereof or variations thereon or similar terminology. The actual future performance of
the Company could differ materially from such statements. Factors that could cause or contribute
to such differences include, but are not limited to: changing economic conditions; pricing of the
Companys products and other competitive market pressures; the costs and availability of raw
materials; fluctuations in foreign currency exchange rates and energy prices; risks associated with
the Companys current and future litigation; and the other risks detailed from time to time in the
Companys SEC filings, including but not limited to, its Annual Report on Form 10-K for the fiscal
year ending December 31, 2010. You are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this release. The Company does not
undertake, and hereby disclaims, any duty to update these forward-looking statements, although its
situation and circumstances may change in the future.
Comparisons of the financial results for the three-month periods ended March 31, 2011 and 2010
follow.
Gardner Denver will broadcast a conference call to discuss results for the first quarter of 2011 on
Thursday, April 21, 2011 at 9:30 a.m. Eastern Time through a live webcast. This free webcast will
be available in listen-only mode and can be accessed, for up to ninety days following the call,
through the Investor Center on the Gardner Denver website at www.GardnerDenver.com or through
Thomson StreetEvents at www.earnings.com.
Gardner Denver, Inc., with 2010 revenues of approximately $1.9 billion, is a leading worldwide
manufacturer of highly engineered products, including compressors, liquid ring pumps and blowers
for various industrial, medical, environmental, transportation and process applications, pumps used
in the petroleum and industrial market segments and other fluid transfer equipment, such as loading
arms and dry break couplers, serving chemical, petroleum and food industries. Gardner Denvers
news releases are available by visiting the Investors section on the Companys website
(www.GardnerDenver.com).
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(1) Segment operating income (defined as income before interest expense, other income, net,
and income taxes) and segment operating margin (defined as segment operating income divided by
segment revenues) are indicative of short-term operational performance and ongoing profitability.
For a reconciliation of segment operating income to consolidated operating income and consolidated
income before income taxes, see Business Segment Results at the end of this press release. |
6
GARDNER DENVER, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts and percentages)
(Unaudited)
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Three Months Ended |
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March 31, |
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% |
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2011 |
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2010 |
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Change |
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Revenues |
$ |
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531,853 |
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$ |
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422,164 |
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26 |
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Cost of sales |
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347,397 |
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288,357 |
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20 |
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Gross profit |
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184,456 |
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133,807 |
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38 |
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Selling and administrative expenses |
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96,021 |
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87,694 |
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9 |
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Other operating expense (income), net |
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1,612 |
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(1,351 |
) |
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NM |
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Operating income |
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86,823 |
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47,464 |
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83 |
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Interest expense |
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5,347 |
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6,116 |
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(13 |
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Other income, net |
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(962 |
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(635 |
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51 |
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Income before income taxes |
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82,438 |
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41,983 |
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96 |
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Provision for income taxes |
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22,539 |
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9,730 |
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132 |
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Net income |
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59,899 |
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32,253 |
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86 |
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Less: Net income attributable to
noncontrolling interests |
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421 |
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295 |
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43 |
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Net income attributable to Gardner Denver |
$ |
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59,478 |
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$ |
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31,958 |
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86 |
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Earnings per share attributable to
Gardner Denver common stockholders: |
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Basic earnings per share |
$ |
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1.14 |
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$ |
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0.61 |
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87 |
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Diluted earnings per share |
$ |
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1.13 |
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$ |
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0.61 |
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85 |
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Cash dividends declared per common share |
$ |
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0.05 |
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$ |
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0.05 |
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- |
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Basic weighted average
number of shares outstanding |
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52,207 |
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52,245 |
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Diluted weighted average
number of shares outstanding |
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52,634 |
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52,685 |
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Shares outstanding as of March 31 |
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52,241 |
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52,327 |
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7
GARDNER DENVER, INC.
CONDENSED BALANCE SHEET ITEMS
(in thousands, except percentages)
(Unaudited)
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% |
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3/31/2011 |
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12/31/2010 |
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Change |
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Cash and cash equivalents |
$ |
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185,305 |
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$ |
|
157,029 |
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18 |
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Accounts receivable, net |
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398,736 |
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|
369,860 |
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8 |
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Inventories, net |
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295,586 |
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|
241,485 |
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22 |
|
Total current assets |
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941,685 |
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828,537 |
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14 |
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Total assets |
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2,164,153 |
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|
|
2,027,098 |
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7 |
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Short-term borrowings and current
maturities of long-term debt |
|
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37,622 |
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|
37,228 |
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|
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1 |
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Accounts payable and accrued liabilities |
|
|
377,513 |
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|
|
322,372 |
|
|
|
17 |
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Total current liabilities |
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415,135 |
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359,600 |
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|
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15 |
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Long-term debt, less current maturities |
|
|
245,721 |
|
|
|
250,682 |
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(2 |
) |
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Total liabilities |
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|
886,092 |
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|
|
837,425 |
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6 |
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Total stockholders equity |
$ |
|
1,278,061 |
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$ |
|
1,189,673 |
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|
7 |
|
8
GARDNER DENVER, INC.
BUSINESS SEGMENT RESULTS
(in thousands, except percentages)
(Unaudited)
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Three Months Ended |
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March 31, |
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% |
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2011 |
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2010 |
|
Change |
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Industrial Products Group |
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Revenues |
$ |
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286,210 |
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$ |
|
246,394 |
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16 |
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Operating income |
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30,802 |
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|
19,553 |
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|
58 |
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% of revenues |
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10.8% |
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7.9% |
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Orders |
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323,511 |
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|
277,800 |
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16 |
|
Backlog |
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254,951 |
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|
210,467 |
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21 |
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Engineered Products Group |
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Revenues |
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|
245,643 |
|
|
|
175,770 |
|
|
|
40 |
|
Operating income |
|
|
56,021 |
|
|
|
27,911 |
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|
|
101 |
|
% of revenues |
|
|
22.8% |
|
|
|
15.9% |
|
|
|
|
|
Orders |
|
|
288,415 |
|
|
|
207,465 |
|
|
|
39 |
|
Backlog |
|
|
392,099 |
|
|
|
229,342 |
|
|
|
71 |
|
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Reconciliation
of Segment Results
to Consolidated Results |
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|
|
|
|
|
|
|
|
|
Industrial Products Group
operating income |
$ |
|
30,802 |
|
$ |
|
19,553 |
|
|
|
|
|
Engineered Products Group
operating income |
|
|
56,021 |
|
|
|
27,911 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated operating income |
|
|
86,823 |
|
|
|
47,464 |
|
|
|
|
|
% of revenues |
|
|
16.3% |
|
|
|
11.2% |
|
|
|
|
|
Interest expense |
|
|
5,347 |
|
|
|
6,116 |
|
|
|
|
|
Other income, net |
|
|
(962 |
) |
|
|
(635 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes |
$ |
|
82,438 |
|
$ |
|
41,983 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% of revenues |
|
|
15.5% |
|
|
|
9.9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company evaluates the performance of its reportable segments based on operating income,
which is defined as income before interest expense, other income, net, and income taxes.
Reportable segment operating income and segment operating margin (defined as segment operating
income divided by segment revenues) are indicative of short-term operating performance and ongoing
profitability. Management closely monitors the operating income and operating margin of each
business segment to evaluate past performance and identify actions required to improve
profitability.
9
GARDNER DENVER, INC.
SELECTED FINANCIAL DATA SCHEDULE
(in millions, except percentages)
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
March 31, |
|
|
|
|
|
|
% |
|
|
|
$
Millions |
|
|
Change |
|
Industrial Products Group |
|
|
|
|
|
|
|
|
2010 Revenues |
|
|
246.4 |
|
|
|
|
|
Effect of currency exchange rates |
|
|
4.1 |
|
|
|
2 |
|
Organic growth |
|
|
35.7 |
|
|
|
14 |
|
|
|
|
|
|
2011 Revenues |
|
|
286.2 |
|
|
|
16 |
|
|
|
|
|
|
|
|
|
|
2010 Orders |
|
|
277.8 |
|
|
|
|
|
Effect of currency exchange rates |
|
|
4.4 |
|
|
|
2 |
|
Organic growth |
|
|
41.3 |
|
|
|
14 |
|
|
|
|
|
|
2011 Orders |
|
|
323.5 |
|
|
|
16 |
|
|
|
|
|
|
|
|
|
|
Backlog as of 3/31/10 |
|
|
210.5 |
|
|
|
|
|
Effect of currency exchange rates |
|
|
9.8 |
|
|
|
5 |
|
Organic growth |
|
|
34.7 |
|
|
|
16 |
|
|
|
|
|
|
Backlog as of 3/31/11 |
|
|
255.0 |
|
|
|
21 |
|
|
|
|
|
|
|
|
|
|
Engineered Products Group |
|
|
|
|
|
|
|
|
2010 Revenues |
|
|
175.8 |
|
|
|
|
|
Incremental effect of acquisitions |
|
|
4.4 |
|
|
|
3 |
|
Effect of currency exchange rates |
|
|
2.6 |
|
|
|
1 |
|
Organic growth |
|
|
62.8 |
|
|
|
36 |
|
|
|
|
|
|
2011 Revenues |
|
|
245.6 |
|
|
|
40 |
|
|
|
|
|
|
|
|
|
|
2010 Orders |
|
|
207.5 |
|
|
|
|
|
Incremental effect of acquisitions |
|
|
3.8 |
|
|
|
2 |
|
Effect of currency exchange rates |
|
|
2.7 |
|
|
|
1 |
|
Organic growth |
|
|
74.4 |
|
|
|
36 |
|
|
|
|
|
|
2011 Orders |
|
|
288.4 |
|
|
|
39 |
|
|
|
|
|
|
|
|
|
|
Backlog as of 3/31/10 |
|
|
229.3 |
|
|
|
|
|
Incremental effect of acquisitions |
|
|
1.6 |
|
|
|
1 |
|
Effect of currency exchange rates |
|
|
10.9 |
|
|
|
5 |
|
Organic growth |
|
|
150.3 |
|
|
|
65 |
|
|
|
|
|
|
Backlog as of 3/31/11 |
|
|
392.1 |
|
|
|
71 |
|
|
|
|
|
|
|
|
|
|
Consolidated |
|
|
|
|
|
|
|
|
2010 Revenues |
|
|
422.2 |
|
|
|
|
|
Incremental effect of acquisitions |
|
|
4.4 |
|
|
|
1 |
|
Effect of currency exchange rates |
|
|
6.7 |
|
|
|
2 |
|
Organic growth |
|
|
98.6 |
|
|
|
23 |
|
|
|
|
|
|
2011 Revenues |
|
|
531.9 |
|
|
|
26 |
|
10
GARDNER DENVER, INC.
RECONCILIATION OF OPERATING INCOME AND DEPS TO
ADJUSTED OPERATING INCOME AND ADJUSTED DEPS
(in thousands, except per share amounts and percentages)
(Unaudited)
While Gardner Denver, Inc. reports financial results in accordance with accounting principles
generally accepted in the U.S. (GAAP), this press release includes non-GAAP measures. These
non-GAAP measures are not in accordance with, nor are they a substitute for, GAAP measures.
Gardner Denver, Inc. believes the non-GAAP financial measures of Adjusted Operating Income and
Adjusted DEPS provide important supplemental information to both management and investors regarding
financial and business trends used in assessing its results of operations. Gardner Denver believes
excluding the specified items from operating income and DEPS provides management a more meaningful
comparison to the corresponding reported periods and internal budgets and forecasts, assists
investors in performing analysis that is consistent with financial models developed by investors
and research analysts, provides management with a more relevant measurement of operating
performance, and is more useful in assessing management performance.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
March 31, 2011 |
|
|
|
Industrial Products |
|
|
Engineered Products |
|
|
|
|
|
|
Group |
|
|
Group |
|
|
Consolidated |
|
|
Operating income |
|
$ |
30,802 |
|
|
$ |
56,021 |
|
|
$ |
86,823 |
|
% of revenues |
|
|
10.8% |
|
|
|
22.8% |
|
|
|
16.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to operating income: |
|
|
|
|
|
|
|
|
|
|
|
|
Profit improvement initiatives (2) |
|
|
891 |
|
|
|
89 |
|
|
|
980 |
|
Other, net (3) |
|
|
513 |
|
|
|
178 |
|
|
|
691 |
|
|
|
|
|
|
|
|
|
|
|
|
Total adjustments to operating income |
|
|
1,404 |
|
|
|
267 |
|
|
|
1,671 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating Income |
|
$ |
32,206 |
|
|
$ |
56,288 |
|
|
$ |
88,494 |
|
% of revenues, as adjusted |
|
|
11.3% |
|
|
|
22.9% |
|
|
|
16.6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
March 31, 2010 |
|
|
|
Industrial Products |
|
|
Engineered Products |
|
|
|
|
|
|
Group |
|
|
Group |
|
|
Consolidated |
|
|
Operating income |
|
$ |
19,553 |
|
|
$ |
27,911 |
|
|
$ |
47,464 |
|
% of revenues |
|
|
7.9% |
|
|
|
15.9% |
|
|
|
11.2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to operating income: |
|
|
|
|
|
|
|
|
|
|
|
|
Profit improvement initiatives (2) |
|
|
1,199 |
|
|
|
155 |
|
|
|
1,354 |
|
Other, net (3) |
|
|
(283 |
) |
|
|
(20 |
) |
|
|
(303 |
) |
|
|
|
|
|
|
|
|
|
|
|
Total adjustments to operating income |
|
|
916 |
|
|
|
135 |
|
|
|
1,051 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating Income |
|
$ |
20,469 |
|
|
$ |
28,046 |
|
|
$ |
48,515 |
|
% of revenues, as adjusted |
|
|
8.3% |
|
|
|
16.0% |
|
|
|
11.5% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
March 31, |
|
|
|
|
|
|
|
|
|
|
|
% |
|
|
|
2011 |
|
|
2010 |
|
|
Change |
|
|
Diluted earnings per share |
|
$ |
1.13 |
|
|
$ |
0.61 |
|
|
|
85 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to diluted earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
Profit improvement initiatives (2) |
|
|
0.01 |
|
|
|
0.02 |
|
|
|
|
|
Other, net (3) |
|
|
0.01 |
|
|
|
(0.01 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total adjustments to diluted earnings per share |
|
|
0.02 |
|
|
|
0.01 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Diluted Earnings Per Share |
|
$ |
1.15 |
|
|
$ |
0.62 |
|
|
|
85 |
|
|
|
|
(2) |
|
Costs, including employee termination benefits, to streamline operations and reduce overhead costs. |
|
(3) |
|
Consists primarily of costs associated with the closure of a manufacturing facility and corporate
relocation in 2011 and the gain on the sale of a foundry in 2010. |
11