Exhibit 99.1
[GARDNER DENVER logo]
===============================================================================
PRESS RELEASE
===============================================================================
FOR IMMEDIATE RELEASE
- ---------------------
July 26, 2006 Contact: Helen W. Cornell
Vice President, Finance and CFO
(217) 228-8209
GARDNER DENVER, INC. REPORTS RECORD LEVEL REVENUE AND NET INCOME:
ORGANIC GROWTH, PRICING, ACQUISITIONS AND COST REDUCTIONS
DRIVE PROFITABILITY IMPROVEMENT
COMPARED TO THE SECOND QUARTER OF 2005:
o REVENUES INCREASE 66%, INCLUDING 20% FROM ORGANIC GROWTH
o NET INCOME INCREASES 125%
o DILUTED EARNINGS PER SHARE INCREASES 107%, EVEN WITH 11% MORE SHARES
OUTSTANDING
o TOTAL SEGMENT OPERATING EARNINGS(1) INCREASE 151%, REACHING
14.2% OF REVENUES
QUINCY, IL (July 26, 2006) - Gardner Denver, Inc. (NYSE: GDI) announced that
revenues and net income for the three months ended June 30, 2006 were $416.3
million and $33.0 million, respectively. For the six-month period of 2006,
revenues and net income were $815.6 million and $63.5 million, respectively.
Diluted earnings per share (DEPS) for the three months ended June 30, 2006
was $0.62, 107% higher than the comparable period of 2005. For the six-month
period of 2006, DEPS was $1.19, 113% better than the comparable period of
the previous year. The improvement in financial results reflects incremental
profitability attributable to organic revenue growth, pricing, acquisitions
and cost reductions, including acquisition integration activities. Current
and prior year DEPS and all share amounts presented in this press release
reflect the effect of the two-for-one stock split (in the form of a stock
dividend) that was completed on June 1, 2006.
CEO's Comments Regarding Results
- --------------------------------
"The second quarter results reflect continued strength in our end markets
and my outlook remains positive," said Ross J. Centanni, Chairman, President
and CEO. "Demand for compressor and vacuum products remains broad-based,
both regionally and across product lines, and continues to strengthen. I am
very encouraged by the improvement in orders for our compressor and vacuum
products in Europe, which has exceeded our expectations. Demand for oil and
natural gas-related products continues to be as strong as I have seen in
more than twenty years. Orders and backlog for these products increased in
the second quarter of 2006, compared to the first quarter of 2006,
reflecting strong demand into the first half of 2007 when the products are
scheduled to be delivered."
<FN>
- -------------------------
(1) Total segment operating earnings (defined as revenues less cost of sales
(excluding depreciation and amortization), depreciation and amortization,
and selling and administrative expenses), and segment operating margin
(defined as segment operating earnings divided by segment revenues) are
indicative of short-term operational performance and ongoing profitability.
See "Business Segment Results."
1
"I am also pleased with our operational improvements. Additional progress
was made in the second quarter to improve the performance of our supply
chain and to outsource capacity-constrained components. Through our efforts,
we have further reduced lead-times, enabling us to increase revenues and
expand segment operating margin(1) (for a reconciliation of segment
operating earnings to consolidated income before income taxes, see "Business
Segment Results."). We have also worked to decrease our investment in
working capital and excess assets. Therefore, in addition to improving DEPS,
our strategic initiatives have resulted in an improved return on equity
(defined as net income divided by average equity), which was 18.1% (on an
annualized basis) for the second quarter of 2006, compared to 11.3%
(annualized) in the second quarter of 2005."
"Our acquisition integration initiatives are progressing on plan. Our
previously announced liquid ring pump manufacturing and product
rationalization initiative, to shift production from Nuremberg, Germany to
China and Brazil, is on schedule. We expect that the facility expansion in
China will be completed this quarter and the entire production transfer will
be completed by year-end. This project is expected to generate annualized
savings in excess of $3 million beginning in the second quarter of 2007."
"In April, we began rationalizing our European blower product lines and
manufacturing facilities. We are merging the Rietschle and Wittig
operations, which are both located in Schopfheim, Germany, and relocating
the mobile blower product line from Wittig to a Gardner Denver facility in
the U.K., where other European mobile equipment is manufactured. We also
intend to rationalize the Nash Elmo and Rietschle side channel blower
product lines and centralize production of standard products in our
manufacturing facility in Bad Neustadt, Germany. To date, we have completed
negotiations with the works councils and have begun to reduce manpower
through attrition, early retirement programs and eliminating temporary
positions. We have started the rearrangement of the manufacturing facility
in the U.K. and are installing some new machine tools required to increase
output. By the fourth quarter of 2007, when the integration project is
scheduled for completion, common manufacturing processes will have been
aligned to increase productivity, and lead-times and inventory levels should
be lower. We also expect to reduce administrative and manufacturing overhead
expenses. Once completed, this project is expected to result in the
elimination of approximately 65 positions."
"We continue to seek opportunities to reduce costs and sell excess assets as
we further streamline operations. In the second quarter of 2006, we sold a
Thomas Industries distribution facility in the U.K. and a former Syltone
manufacturing plant in the U.S., generating a total of approximately $3.3
million of cash. We are also actively integrating the sales companies
acquired through the Syltone, Nash Elmo and Thomas Industries acquisitions,
which is expected to enable further margin expansion in 2007."
2
Outlook
- -------
"According to the Federal Reserve Board, total industry capacity utilization
in the U.S. remained above 81% throughout the second quarter, which tends to
correlate with good demand for our industrial products. The economic
environment in Europe and Asia also remains strong. Generally, demand for
our products used in industrial applications lags economic cycle changes by
approximately six months. Therefore, we remain optimistic in our demand
outlook for industrial products through the remainder of 2006. Demand for
our drilling and well stimulation pumps also remains strong and, given the
extended visibility we have in this side of our business, we expect demand
to remain strong for these products at least through 2007. We were
successful in improving revenues in this reportable segment in the second
quarter of 2006 through price increases and additional outsourcing of
component production. Further revenue increases for oil and natural
gas-related products will depend upon our ability to identify additional
outsourcing alternatives, implement incremental price increases and expand
machining capacity through capital investment."
"As expected, integration activities negatively impacted the Compressor and
Vacuum Products segment operating earnings in the second quarter of 2006, as
a result of lower productivity and increased severance expenses. We expect
the costs associated with the integration projects to further impact
financial results in the third and fourth quarter of 2006, and then not
recur in 2007. Furthermore, due to manufacturing plant shutdown schedules
and holidays, there are fewer work days at many of our facilities in the
second half of the year, than in the first. Therefore, we expect net income
in the second half of 2006 to be less than that of the first half of 2006.
However, we believe lean manufacturing initiatives, further supplier
performance improvements and a focus on divesting excess facilities will
contribute to inventory and asset reductions over the remainder of the
year," noted Mr. Centanni.
"Given our current economic outlook, as well as our existing level of
backlog and operational improvements, we are increasing our DEPS outlook for
2006 to a range of $2.20 to $2.40, with third quarter DEPS approximating
$0.47 to $0.57. The current estimate assumes that approximately $1.0 to $2.0
million of severance and relocation expenses ($0.01 to $0.02 DEPS) are
incurred in the second half as a result of integration projects. The
midpoint of the range for 2006 ($2.30) represents a 68% increase over the
2005 results. This improvement is expected despite the $0.07 reduction in
DEPS associated with recognizing stock-based compensation expense for the
year in accordance with SFAS 123(R), a greater number of average shares
outstanding for the twelve-month period of 2006 (compared to 2005) and a
higher effective tax rate. The implementation of SFAS 123(R) is expected to
reduce net income by $0.6 million ($0.01 DEPS) in each of the remaining
quarters of 2006."
"The anticipated effective tax rate for 2006 is higher than the rate
incurred in the prior year and our previous expectation for 2006. Based on
current expectations for the sources and magnitude of earnings in 2006, the
effective tax rate assumed in the DEPS guidance for 2006 is 33%. The
anticipated increase in the effective tax rate is primarily a result of
incremental pretax income generated in the U.S. and Germany in 2006, which
is taxed at higher
3
rates than the Company's effective average for 2005 (30%). Tax planning
strategies also provide decreasing rate benefits as the Company's pretax
earnings increase."
Second Quarter Results
- ----------------------
Revenues increased $166.0 million (66%) to $416.3 million for the three
months ended June 30, 2006, compared to the same period of 2005. Compressor
and Vacuum Products segment revenues increased 65% for the three-month
period of 2006, compared to the previous year, primarily due to the
incremental effect of acquisitions, stronger demand, manufacturing and
supply chain improvements that resulted in increased production output, and
price increases. Fluid Transfer Products segment revenues increased 71% for
the three months ended June 30, 2006, compared to the same period of 2005,
primarily due to stronger demand for drilling and well servicing pumps,
manufacturing and supply chain improvements, incremental shipments as a
result of increased outsourcing and price increases. (See Selected Financial
Data Schedule.)
Orders for the three-month period ended June 30, 2006 were $181.0 million
(66%) higher than the same period of the previous year, due to acquisitions
and organic growth. The year-over-year organic growth in orders for
compressor and vacuum products was 12%, which was supplemented by
incremental orders from acquisitions. The 55% organic order growth for fluid
transfer products for the three-month period of 2006 was driven by demand
for oil and natural gas-related products that are expected to ship during
the first half of 2007. Acquisitions also favorably impacted orders for
fluid transfer products. Despite the increased revenue levels in the second
quarter of 2006, orders in each reportable segment exceeded revenues,
resulting in a 10% increase in total backlog from March 31, 2006.
Cost of sales (excluding depreciation and amortization) as a percentage of
revenues decreased to 64.8% in the three-month period ended June 30, 2006,
from 67.1% in the same period of 2005. This improvement was attributable to
cost reduction initiatives and leveraging fixed and semi-fixed costs over
additional production volume. Favorable sales mix also contributed to lower
cost of sales (excluding depreciation and amortization) as a percentage of
revenues. The second quarter of 2006 included a higher percentage of
drilling pump and replacement pump parts shipments than the previous year
and these products have cost of sales (excluding depreciation and
amortization) percentages below the Company's average. Declines in
productivity related to acquisition integration efforts partially offset
some of these improvements.
Depreciation and amortization increased $7.3 million (102%) to $14.5
million, primarily due to the incremental effect of acquisitions. In the
three months ended June 30, 2006, the Company substantially completed the
allocation of the Thomas Industries purchase price to the assets acquired.
The finalization of the fair market value of this business's tangible and
amortizable intangible assets resulted in a $1.7 million increase in
depreciation and amortization expense in the three-month period of 2006 that
is not expected to recur.
4
As a percentage of revenues, selling and administrative expenses decreased
to 17.5% for the three-month period ended June 30, 2006, compared to 20.7%
for the same period of 2005. Selling and administrative expenses increased
$21.3 million in the three-month period ended June 30, 2006 to $73.0
million, primarily due to the incremental effect of acquisitions ($20.7
million) and stock-based compensation expense ($0.8 million). These
increases were partially offset by cost reductions, net of inflationary
factors such as salary increases.
As a result of the improved cost of sales (excluding depreciation and
amortization) percentage and leveraging selling and administrative expenses
over higher revenues, operating earnings(1) (for a reconciliation of segment
operating earnings to consolidated income before income taxes, see "Business
Segment Results.") as a percentage of revenues (operating margin) for each
reportable segment improved for the three-month period ended June 30, 2006,
compared to the same period of 2005. Compressor and Vacuum Products segment
operating margin was 10.4% in the three months ended June 30, 2006, compared
to 8.1% in the same period of 2005. Fluid Transfer Products segment
operating margin increased to 27.8% for the three months ended June 30,
2006, a new record level for this reportable segment, compared to 14.2% in
the same period of 2005. The primary causes for the sequential decline in
operating margin for the Compressor and Vacuum Products segment from the
first quarter of 2006 (11.2%) to the second quarter of 2006 (10.4%) were the
productivity decreases, integration-related severance expenses ($0.5
million) and the adjustment to depreciation and amortization that were
discussed previously.
Incremental borrowings necessary to complete acquisitions and higher
short-term interest rates resulted in increased interest expense for the
three months ended June 30, 2006, compared to the same period of 2005. Other
income, net, in the three-month period of 2005 included approximately $0.7
million of interest income earned on the investment of financing proceeds,
prior to their use to complete the Thomas acquisition, and proceeds from
litigation-related settlements ($1.6 million).
Net income for the three months ended June 30, 2006 increased $18.3 million
(125%) to $33.0 million, compared to $14.7 million in same period of 2005,
despite the inclusion of stock-based compensation expense and the higher
effective tax rate in 2006 (33.9%) than in 2005 (30.0%). The results for
2006 include approximately $1.5 million of net income from acquisitions.
Diluted earnings per share for the three-month period of 2006 was $0.62,
107% higher than comparable period of the previous year as a result of the
increased net income. The improvement in DEPS is after the dilutive effect
of the issuance of 11.3 million shares in May 2005 (adjusted for the stock
dividend completed in June 2006).
5
Six Month Results
- -----------------
Revenues for the first half of 2006 increased $326.4 million (67%) to $815.6
million, compared to the same period of 2005, due to acquisitions, organic
growth and pricing. Unfavorable changes in currency exchange rates partially
offset this improvement. (See Selected Financial Data Schedule.)
Net income for the six months ended June 30, 2006 increased $38.5 million
(154%) to $63.5 million ($1.19 DEPS), compared to $25.0 million ($0.56 DEPS)
in same period of 2005. This increase was primarily attributable to organic
revenue growth and price increases, cost reductions (including those
associated with integrating previously acquired businesses) and acquisitions
(net of interest expense related to financing the purchase price). DEPS for
the six months ended June 30, 2006 was reduced $0.05 due to the recognition
of stock-based compensation expense in accordance with SFAS 123(R). Compared
to the previous year, DEPS for 2006 was also reduced as a result of having a
greater number of average shares outstanding and a higher effective tax
rate.
Cash provided by operating activities was approximately $23.3 million in the
six-month period of 2006, 24% more than $18.8 million generated in the same
period of 2005. Incremental production volume and revenues have resulted in
increased investments in inventories and receivables since December 31,
2005. However, inventory turnover and days sales outstanding in the second
quarter of 2006 are comparable to the levels of the fourth quarter of 2005.
The Company invested approximately $16.1 million in capital expenditures in
the six-month period of 2006, compared to $10.5 million in the same period
of 2005. The higher spending in 2006 reflects incremental investments in
acquisition integration, cost reductions and capital spending at Thomas
Industries' operations. Capital spending is currently expected to be
approximately $45 million to $50 million in 2006, and will be used primarily
to integrate businesses, introduce new products and improve operations. In
addition to capital expenditures, cash provided by operations was used for
acquisition payments and to repay debt. At the end of June 2006, debt to
total capital was 42.0%, compared to 46.4% on December 31, 2005.
Cautionary Statement Regarding Forward-Looking Statements
- ---------------------------------------------------------
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, including, without
limitation, the statements made under the "CEO's Comments Regarding Results"
and "Outlook" sections. As a general matter, forward-looking statements are
those focused upon anticipated events or trends, expectations, and beliefs
relating to matters that are not historical in nature. 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. These
uncertainties and factors could cause actual results to differ materially
from those matters expressed in or implied by such forward-looking
statements.
6
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: (1) the ability to
effectively integrate acquisitions, including product and manufacturing
rationalization initiatives, and realize anticipated cost savings, synergies
and revenue enhancements; (2) the risk that the Company may incur
significant cash integration costs to achieve any such cost savings; (3) the
Company's exposure to economic downturns and market cycles, particularly the
level of oil and natural gas prices and oil and gas drilling and production,
which affect demand for the Company's petroleum products, and industrial
production and manufacturing capacity utilization rates, which affect demand
for the Company's compressor and vacuum products; (4) the risks of large or
rapid increases in raw material costs or substantial decreases in their
availability, and the Company's dependence on particular suppliers,
particularly iron casting and other metal suppliers; (5) the risks
associated with intense competition in the Company's markets, particularly
the pricing of the Company's products; (6) the Company's ability to continue
to identify and complete other strategic acquisitions and effectively
integrate such acquisitions to achieve desired financial benefits; (7)
economic, political and other risks associated with the Company's
international sales and operations, including changes in currency exchange
rates (primarily between the U.S. dollar, the Euro, the British pound and
the Chinese yuan); (8) changes in the availability or costs of new financing
to support the Company's operations and future investments; (9) the risks
associated with pending asbestos and silicosis personal injury lawsuits, as
well as other potential product liability and warranty claims due to the
nature of the Company's products; (10) the risks associated with
environmental compliance costs and liabilities; (11) the ability to attract
and retain quality management personnel; (12) the ability to avoid employee
work stoppages and other labor difficulties; (13) the risks associated with
defending against potential intellectual property claims and enforcing
intellectual property rights; (14) market performance of pension plan assets
and changes in discount rates used for actuarial assumptions in pension and
other postretirement obligation and expense calculations; (15) the risk of
possible future charges if the Company determines that the value of goodwill
or other intangible assets has been impaired; and (16) changes in laws and
regulations, including accounting standards, tax requirements and related
interpretations or guidance. 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 and six-month periods
ended June 30, 2006 and 2005 follow.
Gardner Denver will broadcast a conference call to discuss second quarter
earnings on Thursday, July 27, 2006 at 9:00 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 Relations page on the Gardner Denver website
(www.gardnerdenver.com) or through Thomson StreetEvents at www.earnings.com.
7
Gardner Denver, Inc., with 2005 revenues of $1.2 billion ($1.4 billion on a
pro forma basis including the acquisition of Thomas Industries, which was
completed in July 2005), is a leading worldwide manufacturer of
reciprocating, rotary and vane compressors, liquid ring pumps and blowers
for various industrial and transportation applications, pumps used in the
petroleum and industrial markets, and other fluid transfer equipment serving
chemical, petroleum, and food industries. Gardner Denver's news releases are
available by visiting the Investor Relations page on the Company's website
(www.gardnerdenver.com).
8
GARDNER DENVER, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts and percentages)
(Unaudited)
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
------------------------ ------------------------
% %
2006 2005 CHANGE 2006 2005 CHANGE
---------- ---------- ---------- ---------- ---------- ----------
Revenues $ 416,312 $ 250,346 66 $ 815,606 $ 489,170 67
Costs and expenses:
Cost of sales (excluding depreciation
and amortization) 269,714 167,900 61 528,889 328,914 61
Depreciation and amortization 14,529 7,199 102 26,527 14,481 83
Selling and administrative expenses 73,043 51,739 41 146,748 104,163 41
Interest expense 9,580 5,251 82 19,812 9,284 113
Other income, net (453) (2,690) (83) (1,140) (3,322) (66)
---------- ---------- ---------- ----------
Total costs and expenses 366,413 229,399 60 720,836 453,520 59
---------- ---------- ---------- ----------
Income before income taxes 49,899 20,947 138 94,770 35,650 166
Provision for income taxes 16,915 6,284 169 31,274 10,695 192
---------- ---------- ---------- ----------
Net income $ 32,984 $ 14,663 125 $ 63,496 $ 24,955 154
========== ========== ========== ==========
Basic earnings per share (1) $ 0.63 $ 0.31 103 $ 1.22 $ 0.57 114
========== ========== ========== ==========
Diluted earnings per share (1) $ 0.62 $ 0.30 107 $ 1.19 $ 0.56 113
========== ========== ========== ==========
Basic weighted average
number of shares outstanding (1) 52,388 47,362 52,249 43,744
========== ========== ========== ==========
Diluted weighted average
number of shares outstanding (1) 53,579 48,444 53,420 44,866
========== ========== ========== ==========
Shares outstanding as of June 30 (1) 52,490 51,598
========== ==========
<FN>
(1) Current and prior year amounts reflect the effect of a two-for-one stock
split (in the form of a stock dividend) completed on June 1, 2006.
9
GARDNER DENVER, INC.
CONDENSED BALANCE SHEET ITEMS
(in thousands, except percentages)
%
6/30/2006 3/31/2006 CHANGE 12/31/2005
----------- ----------- ---------- -----------
(Unaudited) (Unaudited)
Cash and equivalents $ 88,600 $ 100,914 (12) $ 110,906
Receivables, net 266,959 262,502 2 229,467
Inventories, net 231,728 226,562 2 207,326
Total current assets 626,059 630,859 (1) 586,267
Total assets 1,793,289 1,772,614 1 1,715,060
Short-term debt and current maturities
of long-term debt 20,907 24,490 (15) 26,081
Accounts payable and accrued liabilities 286,454 280,157 2 287,763
Total current liabilities 307,361 304,647 1 313,844
Long-term debt, less current maturities 527,588 558,321 (6) 542,641
Total liabilities 1,035,335 1,068,818 (3) 1,056,771
Total stockholders' equity $ 757,954 $ 703,796 8 $ 658,289
10
GARDNER DENVER, INC.
BUSINESS SEGMENT RESULTS
(in thousands, except percentages)
(Unaudited)
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
------------------------ ------------------------
% %
2006 2005 CHANGE 2006 2005 CHANGE
---------- ---------- ---------- ---------- ---------- ----------
COMPRESSOR AND VACUUM PRODUCTS
Revenues $ 325,402 $ 197,325 65 $ 643,835 $ 386,498 67
Operating earnings 33,751 15,955 112 69,559 28,673 143
% of revenues 10.4% 8.1% 10.8% 7.4%
Orders 344,260 205,257 68 677,957 423,173 60
Backlog 342,866 198,998 72 342,866 198,998 72
FLUID TRANSFER PRODUCTS
Revenues 90,910 53,021 71 171,771 102,672 67
Operating earnings 25,275 7,553 235 43,883 12,939 239
% of revenues 27.8% 14.2% 25.5% 12.6%
Orders 110,437 68,402 61 198,531 147,050 35
Backlog 193,140 96,836 99 193,140 96,836 99
RECONCILIATION OF SEGMENT RESULTS
TO CONSOLIDATED RESULTS
Compressor and Vacuum Products
operating earnings $ 33,751 $ 15,955 $ 69,559 $ 28,673
Fluid Transfer Products operating earnings 25,275 7,553 43,883 12,939
---------- ---------- ---------- ----------
Total segment operating earnings 59,026 23,508 113,442 41,612
Interest expense 9,580 5,251 19,812 9,284
Other income, net (453) (2,690) (1,140) (3,322)
---------- ---------- ---------- ----------
Income before income taxes $ 49,899 $ 20,947 $ 94,770 $ 35,650
========== ========== ========== ==========
Income before income taxes as a
percentage of revenues 12.0% 8.4% 11.6% 7.3%
========== ========== ========== ==========
The Company has determined its reportable segments in accordance with Statement
of Financial Accounting Standards No. 131, "Disclosures about Segments of an
Enterprise and Related Information." The Company evaluates the performance of
its reportable segments based on income before interest expense, other income,
net, and income taxes. Reportable segment operating earnings (defined as
revenues less cost of sales (excluding depreciation and amortization),
depreciation and amortization, and selling and administrative expenses) and
segment operating margin (defined as segment operating earnings divided by
revenues) are indicative of short-term operating performance and ongoing
profitability. Management closely monitors the operating earnings of its
reportable segments to evaluate past performance, management performance and
compensation, and actions required to improve profitability.
11
GARDNER DENVER, INC.
SELECTED FINANCIAL DATA SCHEDULE
(in millions, except percentages)
(Unaudited)
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
----------------------- -------------------------
% %
$ MILLIONS CHANGE $ MILLIONS CHANGE
---------- ------ ---------- ------
COMPRESSOR AND VACUUM PRODUCTS
2005 Revenues 197.3 386.5
Incremental effect of acquisitions 109.8 56 218.2 57
Effect of currency exchange rates 0.2 -- (7.1) (2)
Organic growth 18.1 9 46.2 12
--------- --------- --------- ---------
2006 Revenues 325.4 65 643.8 67
2005 Orders 205.3 423.2
Incremental effect of acquisitions 114.6 56 218.9 52
Effect of currency exchange rates 0.4 -- (7.7) (2)
Organic growth 24.0 12 43.6 10
--------- --------- --------- ---------
2006 Orders 344.3 68 678.0 60
Backlog as of 06/30/05 199.0
Incremental effect of acquisitions 94.2 47
Effect of currency exchange rates 7.0 4
Organic growth 42.7 21
--------- ---------
Backlog as of 06/30/06 342.9 72
FLUID TRANSFER PRODUCTS
2005 Revenues 53.0 102.7
Incremental effect of acquisitions 4.4 8 8.9 9
Effect of currency exchange rates 0.3 1 (1.0) (1)
Organic growth 33.2 62 61.2 59
--------- --------- --------- ---------
2006 Revenues 90.9 71 171.8 67
2005 Orders 68.4 147.1
Incremental effect of acquisitions 4.0 6 9.9 7
Effect of currency exchange rates 0.3 -- (1.5) (1)
Organic growth 37.7 55 43.0 29
--------- --------- --------- ---------
2006 Orders 110.4 61 198.5 35
Backlog as of 06/30/05 96.8
Incremental effect of acquisitions 1.9 2
Effect of currency exchange rates 1.7 2
Organic growth 92.7 95
--------- ---------
Backlog as of 06/30/06 193.1 99
CONSOLIDATED REVENUES
2005 250.3 489.2
Incremental effect of acquisitions 114.2 46 227.1 47
Effect of currency exchange rates 0.5 -- (8.1) (2)
Organic growth 51.3 20 107.4 22
--------- --------- --------- ---------
2006 416.3 66 815.6 67
12
GARDNER DENVER, INC.
SELECTED FINANCIAL DATA SCHEDULE
(in millions, except percentages)
(Unaudited)
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
----------------------------------- ------------------------------------
% % OF % % OF
$ MILLIONS CHANGE REVENUES $ MILLIONS CHANGE REVENUES
---------- ------ -------- ---------- ------ --------
2005 Compressor and Vacuum
Operating Earnings 15.9 8.1 28.7 7.4
Incremental effect of acquisitions 9.3 58 8.5 23.0 80 10.5
Other changes 8.5 54 17.8 63
-------------------- --------------------
2006 Compressor and Vacuum
Operating Earnings 33.7 112 10.4 69.5 143 10.8
2005 Fluid Transfer
Operating Earnings 7.6 14.2 12.9 12.6
Incremental effect of acquisitions 0.7 9 15.9 1.5 12 16.9
Other changes 17.0 226 29.5 227
-------------------- --------------------
2006 Fluid Transfer
Operating Earnings 25.3 235 27.8 43.9 239 25.5
DEPRECIATION & AMORTIZATION
2005 7.2 2.9 14.5 3.0
Incremental effect of acquisitions 7.4 103 6.5 12.4 86 5.5
Other changes (0.1) (1) (0.4) (3)
-------------------- --------------------
2006 14.5 102 3.5 26.5 83 3.2
SELLING & ADMINISTRATIVE EXPENSES
2005 51.7 20.7 104.2 21.3
Incremental effect of acquisitions 20.7 40 18.1 40.7 39 17.9
Other changes 0.6 1 1.8 2
-------------------- --------------------
2006 73.0 41 17.5 146.7 41 18.0
TOTAL SEGMENT OPERATING EARNINGS
2005 23.5 9.4 41.6 8.5
Incremental effect of acquisitions 10.0 43 8.8 24.5 59 10.8
Other changes 25.5 108 47.3 114
-------------------- --------------------
2006 59.0 151 14.2 113.4 173 13.9
NET INCOME
2005 14.7 5.9 25.0 5.1
Incremental effect of acquisitions 1.6 11 1.4 5.9 24 2.6
Other changes 16.7 114 32.6 130
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2006 33.0 125 7.9 63.5 154 7.8
13