UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) February 22, 2013
Gardner Denver, Inc.
(Exact name of registrant as specified in its charter)
Delaware | 1-13215 | 76-0419383 | ||
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) |
1500 Liberty Ridge Drive, Suite 3000 Wayne, PA |
19087 | |
(Address of principal executive offices) | (Zip Code) |
(610) 249-2000
(Registrants telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. | Results of Operations and Financial Condition. |
On February 22, 2013, Gardner Denver, Inc. (the Company) issued a press release announcing the Companys results for the fourth quarter and full year ended December 31, 2012 and guidance for diluted earnings per share for the first quarter of 2013 and for the fiscal year ending December 31, 2013 (the Press Release). A copy of the Press Release is furnished with this Current Report on Form 8-K as Exhibit 99.1 and is incorporated by reference herein.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
99.1 | Gardner Denver, Inc. Press Release dated February 22, 2013 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
GARDNER DENVER, INC. | ||||||
Date: February 26, 2013 | By: | /s/ Brent A. Walters | ||||
Brent A. Walters | ||||||
Vice President, General Counsel, Chief Compliance Officer & Secretary |
EXHIBIT INDEX
Exhibit |
Description | |
99.1 | Gardner Denver, Inc. Press Release dated February 22, 2013 |
Exhibit 99.1
Press Release
February 22, 2013 | Contact: Vikram U. Kini | |||
VP, Investor Relations | ||||
Tel. (610) 249-2009 |
GARDNER DENVER REPORTS FOURTH QUARTER AND FULL YEAR 2012 RESULTS
| Fourth Quarter Diluted Earnings Per Share (DEPS) of $1.40 and Adjusted DEPS of $1.49 (1) |
| Full Year 2012 DEPS of $5.28 and Record Adjusted DEPS of $5.74 (1) |
| 2013 Guidance Established |
WAYNE, Pa., February 22, 2013 Gardner Denver, Inc. (NYSE: GDI) today reported fourth quarter and full year 2012 results that included record Adjusted DEPS. (1)
Revenues for the fourth quarter ended December 31, 2012 were $589.7 million, down 4% compared with the prior year fourth quarter. Operating income for the fourth quarter of 2012 was $95.9 million, compared with $108.1 million in the fourth quarter of the prior year, resulting in an operating margin decline of 130 basis points to 16.3%. Net income attributable to Gardner Denver for the fourth quarter of 2012 was $69.1 million, or $1.40 DEPS, compared with $77.4 million, or $1.52 DEPS, in the same period of 2011. Results for the fourth quarter of 2012 included after-tax charges of $0.09 per diluted share primarily related to the Companys ongoing restructuring activities, severance related costs and costs incurred in connection with the exploration of strategic alternatives. Excluding these charges, Adjusted DEPS for the fourth quarter of 2012 was $1.49, compared with $1.54 in the same period of 2011. (1)
For the full year ended December 31, 2012, revenues were $2.356 billion compared with $2.371 billion in the same period of 2011. Adjusted Operating Income declined slightly to $404.3 million, compared with $414.3 million earned in the same period of 2011. (1) DEPS was $5.28 for 2012 and Adjusted DEPS reached a record high of $5.74, up from $5.51 per diluted share in 2011. (1)
During 2012, we successfully executed our strategy in the midst of a challenging economic environment and as a result we achieved record Adjusted DEPS for 2012 as well as strong cash flow from operations of $289 million, said Michael M. Larsen, Gardner Denvers President and Chief Executive Officer. We took decisive actions to improve productivity and reduce structural costs and we were pleased with our strong finish for 2012 that positions us well for 2013 performance.
Factors affecting fourth quarter results for the Companys business segments included: (2)
Engineered Products Group (EPG)
In the fourth quarter of 2012, EPG revenues decreased 10% to $263.3 million compared with the same period of 2011. On a sequential basis, Gardner Denver grew revenues by 11% in the fourth quarter of 2012 compared with $236.7 million in the third quarter of 2012. Operating income in the fourth quarter of 2012 decreased 20% to $57.2 million and as a result operating margins decreased to 21.7%, down 280 basis points from last years fourth quarter.
For the full year 2012, EPG revenues decreased 5% to $1.062 billion from $1.115 billion in the same period of 2011. Adjusted Operating Income for the full year 2012 was $244.6 million, a decrease of 8% versus prior year, and Adjusted Operating Margins decreased 70 basis points to 23.0%. (1) As expected, EPG Adjusted Operating Income in the fourth quarter decreased and Adjusted Operating Margins fell due to lower revenues in our Petroleum and Industrial Pump business.
Industrial Products Group (IPG)
IPG revenues increased 1% to $326.4 million for the fourth quarter of 2012 compared to the same period of 2011. Operating income in the fourth quarter of 2012 increased 5% to $38.7 million and Adjusted Operating Margins increased to 12.9%, up 130 basis points from the same period of 2011. (1)
For the full year 2012, IPG revenues increased 3% to $1.294 billion from $1.256 billion for the full year of 2011, driven largely by the Robuschi acquisition. Adjusted Operating Income for the full year 2012 was $159.7 million, an increase of 7% versus prior year, and Adjusted Operating Margins increased to 12.3%, up 40 basis points from the same period of 2011. (1)
Our IPG group executed well on our margin expansion initiatives supported by the principles of the Gardner Denver Way, said Mr. Larsen. We are implementing decisive cost control actions, such as our previously announced European restructuring plan, and will continue to opportunistically right-size and restructure our operations as needed. We will also continue to execute our strategy with a distinct focus on expanding our sales presence and capturing the aftermarket opportunity, which we believe will help us to mitigate the challenging environment for Petroleum and Industrial Pumps. We believe these actions position Gardner Denver to achieve continued margin expansion and long-term profitable growth, said Mr. Larsen.
Outlook
We remain focused on executing our proven strategy that has allowed Gardner Denver to achieve sustainable, profitable growth over the past 4 years, said Mr. Larsen. Our dynamic plan reflects the current macroeconomic challenges as well
as our commitment to driving growth and value for our shareholders. We are confident that Gardner Denver is taking the steps necessary to position the Company to capitalize on favorable long-term industry trends, including recovery in the global markets, particularly energy. In the near-term, we are encouraged by recent improvements in economic indicators and order rates, and we believe the Company is poised to benefit from improving trends should they occur faster than expected. At the same time, we believe we are being appropriately cautious in our 2013 outlook.
Earnings for the full year of 2013 are expected to be in the range of $4.25 to $4.50 per diluted share. First quarter 2013 DEPS are expected to range between $0.90 and $1.00. These projections include profit improvement costs and other items totaling $0.04 per diluted share for the first quarter and $0.75 per diluted share for the full year 2013. Based upon this, first quarter 2013 Adjusted DEPS are expected to range between $0.94 and $1.04 and full year 2013 Adjusted DEPS are expected to range between $5.00 and $5.25. (1)
Conference Call Today
As previously announced, Gardner Denver will host a conference call to discuss results for the fourth quarter of 2012 today, Friday, February 22, 2013 at 8:30 a.m. EDT through a live webcast. This webcast will be available in listen-only mode and can be accessed, for up to ninety days following the call, through the Investors section on the Gardner Denver website at www.GardnerDenver.com or through Thomson Reuters StreetEvents at www.earnings.com.
Corporate Profile
Gardner Denver, Inc., with 2012 revenues of approximately $2.4 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).
Forward-Looking Information
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: the exploration of strategic alternatives to enhance shareholder value, execution of restructuring plans, senior management turnover, 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 ended December 31, 2011, and its subsequent quarterly reports on Form 10-Q for the 2012 fiscal year. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press 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.
(1) | Adjusted Operating Income and Adjusted Operating Margin, on a consolidated and segment basis, and Adjusted DEPS are financial measures that are not in accordance with GAAP. For reconciliation to the comparable GAAP number for reported historical periods please 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, Adjusted Operating Margin 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. |
(2) | 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. |
GARDNER DENVER, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts and percentages)
(Unaudited)
Three Months Ended December 31, |
% Change |
Twelve Months Ended December 31, |
% Change |
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2012 | 2011 | 2012 | 2011 | |||||||||||||||||||||
Revenues |
$ | 589,671 | $ | 613,675 | (4 | ) | $ | 2,355,525 | $ | 2,370,903 | (1 | ) | ||||||||||||
Cost of sales |
387,643 | 406,030 | (5 | ) | 1,551,138 | 1,563,049 | (1 | ) | ||||||||||||||||
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Gross profit |
202,028 | 207,645 | (3 | ) | 804,387 | 807,854 | | |||||||||||||||||
Selling and administrative expenses |
98,424 | 99,560 | (1 | ) | 402,745 | 394,769 | 2 | |||||||||||||||||
Other operating expense (income), net |
7,739 | (51 | ) | N/A | 28,898 | 12,374 | 134 | |||||||||||||||||
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Operating income |
95,865 | 108,136 | (11 | ) | 372,744 | 400,711 | (7 | ) | ||||||||||||||||
Interest expense |
3,166 | 3,218 | (2 | ) | 14,706 | 15,397 | (4 | ) | ||||||||||||||||
Other income, net |
(692 | ) | (846 | ) | (18 | ) | (3,524 | ) | (1,667 | ) | 111 | |||||||||||||
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Income before income taxes |
93,391 | 105,764 | (12 | ) | 361,562 | 386,981 | (7 | ) | ||||||||||||||||
Provision for income taxes |
23,987 | 28,094 | (15 | ) | 97,069 | 107,439 | (10 | ) | ||||||||||||||||
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Net income |
69,404 | 77,670 | (11 | ) | 264,493 | 279,542 | (5 | ) | ||||||||||||||||
Less: Net income attributable to noncontrolling interests |
340 | 289 | 18 | 1,227 | 1,979 | (38 | ) | |||||||||||||||||
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Net income attributable to Gardner Denver |
$ | 69,064 | $ | 77,381 | (11 | ) | $ | 263,266 | $ | 277,563 | (5 | ) | ||||||||||||
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Earnings per share attributable to |
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Gardner Denver common stockholders: |
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Basic earnings per share |
$ | 1.41 | $ | 1.53 | (8 | ) | $ | 5.31 | $ | 5.37 | (1 | ) | ||||||||||||
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Diluted earnings per share |
$ | 1.40 | $ | 1.52 | (8 | ) | $ | 5.28 | $ | 5.33 | (1 | ) | ||||||||||||
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Cash dividends declared per common share |
$ | 0.05 | $ | 0.05 | | $ | 0.20 | $ | 0.20 | | ||||||||||||||
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Basic weighted average number of shares outstanding |
49,125 | 50,612 | 49,591 | 51,669 | ||||||||||||||||||||
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Diluted weighted average number of shares outstanding |
49,316 | 50,953 | 49,816 | 52,054 | ||||||||||||||||||||
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Shares outstanding as of December 31 |
49,144 | 50,651 | ||||||||||||||||||||||
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GARDNER DENVER, INC.
CONDENSED BALANCE SHEET ITEMS
(in thousands, except percentages)
(Unaudited)
12/31/2012 | 9/30/2012 | % Change |
12/31/2011 | |||||||||||||
Cash and cash equivalents |
$ | 254,000 | $ | 248,933 | 2 | $ | 155,259 | |||||||||
Accounts receivable, net |
444,815 | 451,132 | (1 | ) | 477,505 | |||||||||||
Inventories, net |
343,197 | 353,371 | (3 | ) | 311,679 | |||||||||||
Total current assets |
1,105,377 | 1,117,095 | (1 | ) | 1,015,734 | |||||||||||
Total assets |
2,490,192 | 2,457,229 | 1 | 2,365,568 | ||||||||||||
Short-term borrowings and current maturities of long-term debt |
359,433 | 108,255 | 232 | 77,692 | ||||||||||||
Accounts payable and accrued liabilities |
391,461 | 406,835 | (4 | ) | 428,062 | |||||||||||
Total current liabilities |
762,481 | 515,090 | 48 | 505,754 | ||||||||||||
Long-term debt, less current maturities |
9,727 | 331,764 | (97 | ) | 326,133 | |||||||||||
Total liabilities |
1,036,029 | 1,089,413 | (5 | ) | 1,085,937 | |||||||||||
Total stockholders equity |
$ | 1,454,163 | $ | 1,367,816 | 6 | $ | 1,279,631 |
GARDNER DENVER, INC.
BUSINESS SEGMENT RESULTS
(in thousands, except percentages)
(Unaudited)
Three Months Ended December 31, |
% Change |
Twelve Months Ended December 31, |
% Change |
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2012 | 2011 | 2012 | 2011 | |||||||||||||||||||||
Industrial Products Group |
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Revenues |
$ | 326,369 | $ | 321,783 | 1 | $ | 1,293,685 | $ | 1,256,010 | 3 | ||||||||||||||
Operating income |
38,666 | 36,723 | 5 | 134,431 | 140,457 | (4 | ) | |||||||||||||||||
% of revenues |
11.8 | % | 11.4 | % | 10.4 | % | 11.2 | % | ||||||||||||||||
Orders |
308,913 | 308,974 | | 1,281,549 | 1,283,398 | | ||||||||||||||||||
Backlog |
246,466 | 254,406 | (3 | ) | 246,466 | 254,406 | (3 | ) | ||||||||||||||||
Engineered Products Group |
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Revenues |
263,302 | 291,892 | (10 | ) | 1,061,840 | 1,114,893 | (5 | ) | ||||||||||||||||
Operating income |
57,199 | 71,413 | (20 | ) | 238,313 | 260,254 | (8 | ) | ||||||||||||||||
% of revenues |
21.7 | % | 24.5 | % | 22.4 | % | 23.3 | % | ||||||||||||||||
Orders |
206,503 | 288,666 | (28 | ) | 922,964 | 1,190,894 | (22 | ) | ||||||||||||||||
Backlog |
279,274 | 415,623 | (33 | ) | 279,274 | 415,623 | (33 | ) | ||||||||||||||||
Reconciliation of Segment Results to Consolidated Results |
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Industrial Products Group operating income |
$ | 38,666 | $ | 36,723 | $ | 134,431 | $ | 140,457 | ||||||||||||||||
Engineered Products Group operating income |
57,199 | 71,413 | 238,313 | 260,254 | ||||||||||||||||||||
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Consolidated operating income |
95,865 | 108,136 | 372,744 | 400,711 | ||||||||||||||||||||
% of revenues |
16.3 | % | 17.6 | % | 15.8 | % | 16.9 | % | ||||||||||||||||
Interest expense |
3,166 | 3,218 | 14,706 | 15,397 | ||||||||||||||||||||
Other income, net |
(692 | ) | (846 | ) | (3,524 | ) | (1,667 | ) | ||||||||||||||||
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Income before income taxes |
$ | 93,391 | $ | 105,764 | $ | 361,562 | $ | 386,981 | ||||||||||||||||
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% of revenues |
15.8 | % | 17.2 | % | 15.3 | % | 16.3 | % | ||||||||||||||||
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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.
GARDNER DENVER, INC.
SELECTED FINANCIAL DATA SCHEDULE
(in millions, except percentages)
(Unaudited)
Three Months Ended December 31, |
Twelve Months Ended December 31, |
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$ Millions | % Change |
$ Millions | % Change |
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Industrial Products Group |
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2011 Revenues |
321.8 | 1,256.0 | ||||||||||||||
Incremental effect of acquisitions |
19.8 | 6 | 89.2 | 7 | ||||||||||||
Effect of currency exchange rates |
(2.4 | ) | (1 | ) | (40.9 | ) | (3 | ) | ||||||||
Organic growth |
(12.8 | ) | (4 | ) | (10.6 | ) | (1 | ) | ||||||||
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2012 Revenues |
326.4 | 1 | 1,293.7 | 3 | ||||||||||||
2011 Orders |
309.0 | 1,283.4 | ||||||||||||||
Incremental effect of acquisitions |
17.0 | 6 | 88.0 | 7 | ||||||||||||
Effect of currency exchange rates |
(2.9 | ) | (1 | ) | (40.4 | ) | (3 | ) | ||||||||
Organic growth |
(14.2 | ) | (5 | ) | (49.5 | ) | (4 | ) | ||||||||
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2012 Orders |
308.9 | | 1,281.5 | | ||||||||||||
Backlog as of 12/31/11 |
254.4 | |||||||||||||||
Effect of currency exchange rates |
4.0 | 2 | ||||||||||||||
Organic growth |
(11.9 | ) | (5 | ) | ||||||||||||
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Backlog as of 12/31/12 |
246.5 | (3 | ) | |||||||||||||
Engineered Products Group |
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2011 Revenues |
291.9 | 1,114.9 | ||||||||||||||
Effect of currency exchange rates |
(1.9 | ) | (1 | ) | (18.3 | ) | (2 | ) | ||||||||
Organic growth |
(26.7 | ) | (9 | ) | (34.8 | ) | (3 | ) | ||||||||
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2012 Revenues |
263.3 | (10 | ) | 1,061.8 | (5 | ) | ||||||||||
2011 Orders |
288.7 | 1,190.9 | ||||||||||||||
Effect of currency exchange rates |
(1.1 | ) | | (16.8 | ) | (1 | ) | |||||||||
Organic growth |
(81.1 | ) | (28 | ) | (251.1 | ) | (21 | ) | ||||||||
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2012 Orders |
206.5 | (28 | ) | 923.0 | (22 | ) | ||||||||||
Backlog as of 12/31/11 |
415.6 | |||||||||||||||
Effect of currency exchange rates |
2.9 | 1 | ||||||||||||||
Organic growth |
(139.2 | ) | (34 | ) | ||||||||||||
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Backlog as of 12/31/12 |
279.3 | (33 | ) | |||||||||||||
Consolidated |
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2011 Revenues |
613.7 | 2,370.9 | ||||||||||||||
Incremental effect of acquisitions |
19.8 | 3 | 89.2 | 4 | ||||||||||||
Effect of currency exchange rates |
(4.3 | ) | (1 | ) | (59.2 | ) | (2 | ) | ||||||||
Organic growth |
(39.5 | ) | (6 | ) | (45.4 | ) | (3 | ) | ||||||||
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2012 Revenues |
589.7 | (4 | ) | 2,355.5 | (1 | ) | ||||||||||
2011 Orders |
597.7 | 2,474.3 | ||||||||||||||
Incremental effect of acquisitions |
17.0 | 3 | 88.0 | 4 | ||||||||||||
Effect of currency exchange rates |
(4.0 | ) | (1 | ) | (57.2 | ) | (2 | ) | ||||||||
Organic growth |
(95.3 | ) | (16 | ) | (300.6 | ) | (13 | ) | ||||||||
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2012 Orders |
515.4 | (14 | ) | 2,204.5 | (11 | ) | ||||||||||
Backlog as of 12/31/11 |
670.0 | |||||||||||||||
Effect of currency exchange rates |
6.9 | 1 | ||||||||||||||
Organic growth |
(151.1 | ) | (23 | ) | ||||||||||||
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Backlog as of 12/31/12 |
525.8 | (22 | ) |
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 December 31, 2012 |
Twelve Months Ended December 31, 2012 |
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Industrial Products Group |
Engineered Products Group |
Consolidated | Industrial Products Group |
Engineered Products Group |
Consolidated | |||||||||||||||||||
Operating income |
$ | 38,666 | $ | 57,199 | $ | 95,865 | $ | 134,431 | $ | 238,313 | $ | 372,744 | ||||||||||||
% of revenues |
11.8 | % | 21.7 | % | 16.3 | % | 10.4 | % | 22.4 | % | 15.8 | % | ||||||||||||
Adjustments to operating income: |
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Profit improvement initiatives (3) |
2,168 | 696 | 2,864 | 14,659 | 3,815 | 18,474 | ||||||||||||||||||
Robuschi backlog and inventory amortization (5) |
| | | 7,391 | | 7,391 | ||||||||||||||||||
Other, net (6) |
1,145 | 1,709 | 2,854 | 3,245 | 2,439 | 5,684 | ||||||||||||||||||
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Total adjustments to operating income |
3,313 | 2,405 | 5,718 | 25,295 | 6,254 | 31,549 | ||||||||||||||||||
Adjusted operating income |
$ | 41,979 | $ | 59,604 | $ | 101,583 | $ | 159,726 | $ | 244,567 | $ | 404,293 | ||||||||||||
% of revenues, as adjusted |
12.9 | % | 22.6 | % | 17.2 | % | 12.3 | % | 23.0 | % | 17.2 | % | ||||||||||||
Three Months Ended December 31, 2011 |
Twelve Months Ended December 31, 2011 |
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Industrial Products Group |
Engineered Products Group |
Consolidated | Industrial Products Group |
Engineered Products Group |
Consolidated | |||||||||||||||||||
Operating income |
$ | 36,723 | $ | 71,413 | $ | 108,136 | $ | 140,457 | $ | 260,254 | $ | 400,711 | ||||||||||||
% of revenues |
11.4 | % | 24.5 | % | 17.6 | % | 11.2 | % | 23.3 | % | 16.9 | % | ||||||||||||
Adjustments to operating income: |
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Profit improvement initiatives (3) |
1,360 | 637 | 1,997 | 6,621 | 1,963 | 8,584 | ||||||||||||||||||
Mark to market currency adjustments (4) |
(3,439 | ) | | (3,439 | ) | (3,439 | ) | | (3,439 | ) | ||||||||||||||
Robuschi backlog and inventory amortization (5) |
1,651 | | 1,651 | 1,651 | | 1,651 | ||||||||||||||||||
Other, net (6) |
925 | 678 | 1,603 | 4,440 | 2,335 | 6,775 | ||||||||||||||||||
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Total adjustments to operating income |
497 | 1,315 | 1,812 | 9,273 | 4,298 | 13,571 | ||||||||||||||||||
Adjusted operating income |
$ | 37,220 | $ | 72,728 | $ | 109,948 | $ | 149,730 | $ | 264,552 | $ | 414,282 | ||||||||||||
% of revenues, as adjusted |
11.6 | % | 24.9 | % | 17.9 | % | 11.9 | % | 23.7 | % | 17.5 | % | ||||||||||||
Three Months Ended December 31, |
Twelve Months Ended December 31, |
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2012 | 2011 | % Change |
2012 | 2011 | % Change |
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Diluted earnings per share |
$ | 1.40 | $ | 1.52 | (8 | ) | $ | 5.28 | $ | 5.33 | (1 | ) | ||||||||||||
Adjustments to diluted earnings per share: |
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Profit improvement initiatives (3) |
0.05 | 0.03 | 0.27 | 0.12 | ||||||||||||||||||||
Mark to market currency adjustments (4) |
| (0.07 | ) | | (0.07 | ) | ||||||||||||||||||
Robuschi backlog and inventory amortization (5) |
| 0.02 | 0.11 | 0.02 | ||||||||||||||||||||
Other, net (6) |
0.04 | 0.03 | 0.08 | 0.10 | ||||||||||||||||||||
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Total adjustments to diluted earnings per share |
0.09 | 0.02 | 0.46 | 0.18 | ||||||||||||||||||||
Adjusted diluted earnings per share |
$ | 1.49 | $ | 1.54 | (3 | ) | $ | 5.74 | $ | 5.51 | 4 |
(3) | Charges in both years reflect costs, including employee termination benefits, to streamline operations and reduce overhead costs. |
(4) | Benefit in 2011 reflects a net foreign currency gain associated with the financing of the acquisition of Robuschi SpA. |
(5) | Relates to amortization of the fair market value adjustments to backlog and inventory acquired as part of the acquisition of Robuschi SpA. |
(6) | Net charges in 2012 consist primarily of fair value adjustments related to the exit of a business, costs associated with the closure of certain manufacturing facilities, certain severance payments, acquisition due diligence and other costs incurred in conjunction with the exploration of strategic alternatives to enhance shareholder value, and the reversal of liabilities under long-term incentive plans and share-based awards which will not eventually vest due to the resignation of the Companys former President and Chief Executive Officer, Barry L. Pennypacker. Charges in 2011 include costs associated with certain severance payments, the closure of a manufacturing facility, acquisition due diligence, and corporate relocation. |
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