Gardner Denver loss widens in Q2

IPO costs weigh on industrial firm

CEO Vicente Reynal cheers as Gardner Denver leaders ring the opening bell at the New York Stock Exchange May 12.

Last updated on July 2nd, 2019 at 09:19 am

Milwaukee-based Gardner Denver Holdings Inc. today reported a large second quarter net loss related to its recent initial public offering.

CEO Vicente Reynal cheers as Gardner Denver leaders ring the opening bell at the New York Stock Exchange May 12.

While revenues were up 25 percent, to $579.1 million, the company recorded a net loss of $146.3 million, or 83 cents lost per share, driven by $226.7 million in pre-tax expenses for stock-based compensation, loss on extinguishment of debt and other fees related to the IPO. That’s compared to a net loss of $4.1 million, or 3 cents lost per share, in the second quarter of 2016.

Gardner Denver paid out $156.2 million in stock-based compensation in the second quarter, and reported a $50.4 million loss on extinguishment of debt. The company surprised its employees with $100 million of stock when it went public.

The company’s operating loss was $101.6 million in the quarter, compared with operating income of $26 million in the second quarter of 2016.

The energy segment drove the revenue increase, with a 94 percent increase year-over-year.

“I am very pleased with our performance in our first quarter as a public company, and the execution of our value creation strategy,” said Vicente Reynal, chief executive officer. “We are focused on deploying and building talent across the organization, expanding margins across each of our segments, and accelerating profitable growth, all driven by effectively allocating capital.”

Gardner Denver makes flow control and compression equipment for the industrial, energy and medical industries. It has 37 manufacturing plants and 6,100 employees worldwide.

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Molly Dill, former BizTimes Milwaukee managing editor.

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