EBITDA Up 196% From Prior Year and 36% Over Prior Quarter
HOUSTON, July 30 /PRNewswire/ -- Universal Compression Holdings, Inc.
(NYSE: UCO), a leading provider of natural gas compression services, today
reported net income of $10.5 million, or $0.37 per diluted share, on revenues
of $140.3 million for its first fiscal 2002 quarter ended June 30, 2001. The
Company reported a loss of $252,000 before non-recurring charges and
extraordinary items, on revenue of $34.8 million, in the first quarter of
fiscal 2001. Included in net income for the quarter ended June 30, 2001 is an
increase of $0.04 per diluted share from the adoption of the Financial
Accounting Standards Board ("FASB") Statement 142, Goodwill and Other
Intangible Assets. EBITDA for the first quarter of fiscal 2002 was $46.8
million, an increase of 196 percent compared to $15.8 million in the prior
year period.
The Company's results improved significantly over the previous quarter
ended March 31, 2001. Sequentially, EBITDA (net income plus income taxes,
interest expense, leasing expense, management fees, depreciation and
amortization excluding non-recurring items and extraordinary gains or losses)
for the first quarter of fiscal 2002 increased 36 percent and net income,
excluding special charges in the previous quarter, increased 80 percent. Net
income, before taking into account the adoption of FASB Statement 142,
increased 58 percent compared to the quarter ended March 31, 2001.
"The Company's improved financial performance is bolstered by a continuing
healthy demand for compression services, which is driven primarily by the
consumption of natural gas," said Stephen A. Snider, Universal's President and
Chief Executive Officer. "We expect further improvement in our results
throughout fiscal 2002 due to our ongoing capital expenditure program,
contributions from newly acquired operations and projected efficiency
enhancements from operations."
Segment Information
Rental revenue for the first quarter of fiscal 2002 was $76.0 million, an
increase of 31 percent from the previous quarter and 189 percent higher than
the prior year period. The Company's rental compressor fleet totaled
2.0 million horsepower at June 30, 2001, compared to 1.9 million horsepower at
March 31, 2001 and 708,000 horsepower at June 30, 2000. The Company's average
horsepower utilization increased to 89 percent for the quarter from 87 percent
in the quarter ended March 31, 2001 and 84 percent in the prior year period.
International rental revenue for the quarter was $14.0 million, an increase of
44 percent from the previous quarter and 242 percent higher than the prior
year period. At June 30, 2001, the Company had approximately 319,000
horsepower under contract internationally.
Fabrication revenue for the quarter was $32.2 million, up 13 percent from
the quarter ended March 31, 2001 and an increase of 321 percent from the prior
year period. Fabrication backlog was $46.9 million at June 30, 2001, up from
$34 million at March 31, 2001 and $18.4 million at June 30, 2000. Parts sales
and service revenue for the quarter was $32.2 million, an increase of
156 percent from the previous quarter, and was $609,000 in the prior year
period.
"We have increased our core rental compression segment, now over
2.1 million horsepower, and added complementary fabrication and service-
related operations. In July 2001, we expanded into the pipeline compression
market with acquisitions of KCI and Louisiana Compressor Maintenance," said
Snider. "Looking ahead, we will continue to selectively seek growth
opportunities, while striving to improve segment profit margins through the
rationalization of acquired businesses. Through the implementation of growth
strategies, our goal is to enhance financial results for our shareholders and
offer a broad range of high quality compression services and products for
natural gas field and pipeline markets."
Conference Call
Universal will host a conference call today at 10:00 am Central Time,
11:00 am Eastern Time to discuss the quarter's results and other corporate
matters. The conference call will be broadcast over the Internet to provide
interested persons the opportunity to listen to it live. The call will also
be archived for one week to provide an opportunity to those unable to listen
to the live broadcast. Both the live broadcast and replay of the archived
version are free of charge to the user.
Persons wishing to listen to the conference call live may do so by logging
on to www.vcall.com at least 15 minutes prior to the start of the call, find
the listing for the Company's call under "Today's Vcalls" and click the
"Listen Info" icon on the right, and then click "Real Audio" next to the date
and time of the call. A replay of the call will remain available at the site
through August 6, 2001.
Universal, headquartered in Houston, Texas, is a leading natural gas
compression services company, providing a full range of rental, sales,
operations, maintenance and fabrication services to the domestic and
international natural gas industry.
Statements about Universal's outlook and all other statements in this
release other than historical facts are forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. These
forward-looking statements rely on a number of assumptions concerning future
events and are subject to a number of uncertainties and factors, many of which
are outside Universal's control, which could cause actual results to differ
materially from such statements. While Universal believes that the assumptions
concerning future events are reasonable, it cautions that there are inherent
difficulties in predicting certain important factors that could impact the
future performance or results of its business. Among the important factors
that could cause actual results to differ materially from those indicated by
such forward-looking statements are integration of recent acquisitions and the
demand for Universal's products and services. These and other risk factors are
discussed in Universal's filings with the Securities and Exchange Commission,
copies of which are available to the public. Universal expressly disclaims any
intention or obligation to revise or update any forward-looking statements
whether as a result of new information, future events, or otherwise.
For Additional Information on Universal Compression by fax at no cost,
Dial 1-800-PRO-INFO, Code UCO
UNIVERSAL COMPRESSION HOLDINGS, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Three Months Ended
June 30, March 31, June 30,
2001 2001 2000
Revenue:
Rentals $75,950 $58,108 $26,274
Fabrication 32,234 28,471 7,661
Parts sales and service 32,177 12,559 609
Other (47) (4) 216
Total revenue 140,314 99,134 34,760
Costs and expenses:
Cost of sales - rental 27,565 21,213 8,970
Cost of sales -
fabrication 28,038 24,019 6,140
Cost of sales - parts
sales and service 25,237 10,335 408
Depreciation and
amortization 11,380 11,588 7,498
Selling, general and
administrative 12,676 9,121 3,455
Operating lease 12,593 8,220 689
Interest expense 5,532 4,623 8,004
Non-recurring charges - 1,640 7,059
Total costs and
expenses 123,021 90,759 42,223
Income (loss) before income
taxes
and extraordinary items 17,293 8,375 (7,463)
Income taxes (benefit) 6,748 3,482 (2,799)
Income (loss) before
extraordinary items $10,545 $4,893 $(4,664)
Extraordinary loss, net
of income tax benefit - (3,239) (6,264)
Net income (loss) $10,545 $1,654 $(10,928)
Weighted average common and
common
equivalent shares
outstanding:
Basic 28,481 22,264 8,817
Diluted 28,811 22,653 8,817
Earnings per share - basic:
Income before
extraordinary items $0.37 $0.22 $(0.53)
Extraordinary loss - (0.15) (0.71)
Net income (loss) $0.37 $0.07 $(1.24)
Earnings per share -
diluted:
Income before
extraordinary items $0.37 $0.22 $(0.53)
Extraordinary loss - (0.14) (0.71)
Net income (loss) $0.37 $0.07 $(1.24)
UNIVERSAL COMPRESSION HOLDINGS, INC.
UNAUDITED SUPPLEMENTAL INFORMATION
(In thousands)
Three Months Ended
June 30, March 31, June 30,
2001 2001 2000
Revenue:
Domestic rentals $61,919 $48,369 $22,175
International rentals 14,031 9,739 4,099
Fabrication 32,234 28,471 7,661
Parts sales and service 32,177 12,559 609
Other (47) (4) 216
Total $140,314 $99,134 $34,760
Gross Profit:
Domestic rentals $38,749 $30,177 $14,245
International rentals 9,636 6,718 3,059
Fabrication 4,196 4,452 1,522
Parts sales and service 6,940 2,224 201
Other (47) (4) 216
Total $59,474 $43,567 $19,243
Selling, General and
Administrative $12,676 $9,121 $3,455
% of Revenue 9% 9% 10%
EBITDA, as adjusted $46,798 $34,446 $15,788
% of Revenue 33% 35% 45%
Profit Margin:
Domestic rentals 63% 62% 64%
International rentals 69% 69% 75%
Fabrication 13% 16% 20%
Parts sales and service 22% 18% 33%
Total 42% 44% 55%
EBITDA, as adjusted, is defined as net income plus income taxes, interest
expense, leasing expense, management fees, depreciation and amortization,
excluding non-recurring items and extraordinary gains and losses.
June 30, March 31,
2001 2001
Debt $224,532 $215,107
Operating Leases $567,500 $527,500
Shareholders' Equity $664,337 $652,574
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SOURCE Universal Compression Holdings, Inc.
CONTACT: David Oatman, Investor Relations, Director of Universal Compression Holdings, Inc., +1-713-335-7460; or General Inquiries, Jeff Wilhoit of The Financial Relations Board BSMG Worldwide, +1-312-640-6757