Flowserve EPS, Before Special Items, Up 117 Percent for Quarter, Up 30 Percent For Year
DALLAS, Feb. 6 /PRNewswire/ -- Flowserve Corp. (NYSE: FLS) today announced
fourth quarter 2000 net income of 50 cents a share, an increase of 117 percent
compared with 23 cents a share in the fourth quarter of 1999, before special
items in both periods.
Fourth quarter 2000 operating income increased 306 percent to
$64.5 million from $15.9 million in the year-ago quarter, excluding special
items in both periods. On a pro forma basis, fourth quarter 2000 operating
income increased 50 percent from $43.1 million in the year ago quarter,
excluding special items. Operating income from comparable operations,
excluding special items, increased 6 percent to $16.9 million in the fourth
quarter of 2000 compared with the prior year period. Currency translation had
about an 8 percent negative impact on fourth quarter 2000 operating income.
Sales increased 106 percent in the fourth quarter of 2000 to
$541.7 million. This compares with $262.7 million in the year-ago quarter.
On a pro forma basis, fourth quarter 2000 sales were virtually unchanged
compared with $543.0 million in the fourth quarter of 1999. Fourth quarter
2000 sales from comparable operations increased about 3 percent to
$269.6 million. Reported fourth quarter 2000 sales were negatively impacted
by about 5 percent from currency translation.
Pro forma results give effect as if the company's 2000 acquisitions of
Ingersoll-Dresser Pump Co. (IDP) and Invatec had been completed on Jan. 1,
1999, and include purchase accounting adjustments. Comparable operations
exclude IDP and Invatec.
After special items in both periods, fourth quarter 2000 net income was
$1.7 million, or 5 cents a share, compared with a net loss of $11.6 million,
or 31 cents a share, in the year-ago quarter.
Fourth quarter 2000 bookings increased 82 percent to $502.3 million
compared with the prior year period, including unfavorable currency
translation impacts. Fourth quarter 2000 bookings fell about 7 percent
compared with pro forma bookings of $539.0 million in the prior year, but were
only down slightly excluding currency translation impacts.
For the full year 2000, the company announced net income of $1.35 a share,
an increase of 30 percent compared with $1.04 a share in 1999, before special
items in both periods. Special items in 1999 included charges associated with
the company's Flowserver initiative, which equaled about 25 cents a share,
although the counterpart Flowserver expenses were not included in the 2000
special items charges. When Flowserver expenses are not treated as special
items in both years, full year 2000 earnings per share increased 71 percent
compared with 1999 on this basis.
Full year 2000 operating income increased 102 percent to $146.6 million
from $72.7 million in the prior year, excluding special items in both periods.
Pro forma 2000 operating income increased 15 percent to $147.4 million
compared with 1999, excluding special items in both periods. Operating income
from comparable operations, excluding special items, increased 9 percent to
$79.1 million in 2000. Currency translation had about an 8 percent negative
impact on full year operating income.
Sales increased 45 percent to $1.54 billion in 2000. This compared with
$1.06 billion in 1999. Pro forma sales for 2000 were $1.96 billion, slightly
down compared with $2.06 billion in the prior year. Full year 2000 sales from
comparable operations fell about 3 percent to $1.03 billion compared with last
year. Full year 2000 sales were negatively impacted by a 5 percent currency
After special items, full year 2000 net income was $13.2 million, or
35 cents a share, compared with $12.2 million, or 32 cents a share, in 1999.
Full year 2000 bookings increased about 46 percent to $1.52 billion
compared with the prior year. Full year 2000 pro forma bookings were
$2.04 billion while bookings from comparable operations were $1.05 billion,
both up slightly from 1999 levels, despite unfavorable currency translations.
On a pro forma basis, end of year backlog increased almost 5 percent to
$659.3 million at Dec. 31. 2000.
Earnings before interest, taxes, depreciation and amortization (EBITDA)
were $86.5 million in the fourth quarter of 2000 compared with $29.8 million
in the year-ago quarter, excluding special items in both periods. EBITDA,
excluding special items, for full year 2000 were $205.1 million compared with
$113.6 million in 1999.
Net interest expense was $34.0 million in the fourth quarter of 2000
compared with $4.3 million in the year-ago period, reflecting the increased
debt associated with the acquisitions of IDP and Invatec.
"We are pleased with our operating performance in the fourth quarter of
2000," said Flowserve Chairman, President and Chief Executive Officer C. Scott
Greer. "The significant year-over-year increases in operating income
demonstrate our ongoing commitment to wring out costs from our operations.
"Our outlook for the petroleum industry, our major end market, remains
positive. Many of our customers are reporting increased capital budgets for
2001. We anticipate these increases could translate into bookings in the
latter part of the year. The power industry remains a prime market for us.
The demand for power continues to escalate, as demonstrated by the current
crisis in the western United States. The chemical and general industrial
sectors are uncertain and continue to send mixed messages. We are still
somewhat cautious as to when we will see increased spending in these end
markets," Greer said.
"These factors could offset one another, leading to flat sales in 2001
compared with pro forma 2000. Even if sales were to be flat, we would still
anticipate improved results in 2001 due to the expected capture of synergies
from the IDP acquisition. Specifically, we believe Flowserve can produce full
year 2001 earnings per share in the range of $1.70 to $1.90, excluding special
charges," Greer said.
"Reflecting normal business patterns, which typically show a soft first
quarter and a very strong fourth quarter, we expect to generate earnings per
share in the neighborhood of 10 cents in the first quarter of 2001, excluding
special charges. This would be about a 70 percent increase in pro forma
operating income compared with the first quarter of the prior year, before
special charges in both periods," Greer said. Additional historical pro forma
information reflecting this pattern is included in this news release.
In the fourth quarter of 2000, special items were one-time expenses
related to the acquisition of IDP. These expenses included restructuring and
integration expenses of $27.0 million. In the prior year period, special
items included expenses of $26.7 million related to the company's 1999
restructuring program and $3.4 million associated with the Flowserver program.
The Pump Division reported sales of $330.6 million in the fourth quarter
of 2000, an increase of 310 percent compared with $80.7 million in the prior
year period. Sales from comparable operations increased 20 percent to
$97.1 million in the fourth quarter of 2000. Operating income increased to
$53.2 million in the fourth quarter of 2000 from $6.6 million in the prior
year period, reflecting the typical high shipping levels in the fourth
"By any measure, our pump business performed very well in the fourth
quarter of 2000. The integration of IDP continues to run smoothly and we
remain on track to achieve a run-rate of $75 million in annual synergy savings
by the end of 2001. In fact, the year end run-rate for synergy savings was
about $44 million versus our original projection of $35 million," Greer said.
The Flow Control Division reported fourth quarter 2000 operating income of
$5.1 million, an increase of 13 percent compared with the year-ago period,
while sales dipped 4 percent to $69.5 million. Operating margin improved
about 110 basis points to 7.3 percent.
"This division's 2000 accomplishments are truly impressive," Greer said.
"Despite fairly difficult conditions in its end-user markets, throughout the
year they increased their quarterly operating margins on a year-over-year
Source: Flowserve Corporation