HOUSTON, Jan. 17 /PRNewswire/ -- Universal Compression Holdings, Inc.
(NYSE: UCO), a leading provider of natural gas compression services, today
reported an increase in total revenue, EBITDA (as defined below) and net
income for the fiscal 2001 third quarter ended December 31, 2000.
For the fiscal 2001 third quarter, total revenue increased 77.9 percent to
approximately $60.0 million, compared to $33.7 million in the year earlier
period. Net income for the quarter was approximately $3.1 million, or
$0.21 per diluted share, compared to a loss of $1.3 million in the third
quarter of last year. In the first fiscal quarter of this year, Universal
completed an initial public offering of its common stock concurrently with a
recapitalization and the refinancing of its debt facilities. In the second
fiscal quarter, Universal completed the acquisition of Gas Compression
Services, Inc.
EBITDA increased 48.8 percent to approximately $21.7 million from
$14.6 million for the same period last year. EBITDA is defined as net income
plus income taxes, interest expense, leasing expense, management fees,
depreciation and amortization.
Rental revenue increased by 42.9 percent, to approximately $36.2 million,
from $25.3 million in the third fiscal quarter last year. This revenue growth
reflects an increase in Universal's available horsepower from an average of
625,000 during the third quarter a year ago to an average of 828,000 for the
quarter just ended. This increase in the horsepower includes additions to the
fleet from Universal's capital expenditures and growth program as well as the
impact of the GCSI acquisition. During the third fiscal quarter, the Company
started its first rental project in Mexico consisting of 10,000 horsepower.
The Mexico project also contributed approximately $4.7 million in one-time
turn key installation revenue and $0.4 million of margin in the fiscal 2001
third quarter.
Contributing to the growth in rental revenues was an increase in the
Company's average horsepower utilization rate from 81.6 percent for the same
period a year ago and 86.2 percent for the preceding quarter to 88.6 percent
during the quarter just ended. The Company also improved its rental gross
margin from 64.3 percent during the third quarter of last year, to 66.1
percent during the recent quarter.
The market for the Company's Engineered Products and parts sales and
services continues to be strong as revenues from the segments for the quarter
totaled approximately $23.8 million (including the $4.7 million from the
Mexico turn key installation project), compared to $8.4 million in the year
earlier period. The margin contribution from Engineered Products and sales
and services increased from $1.4 million to $2.5 million. Engineered Products
backlog increased to $30 million at December 31, 2000 from $11 million at
December 31, 1999.
The Company continues to focus on cost management in all areas of its
business while growing its revenue base. Its selling, general and
administrative expenses for the third fiscal quarter increased from the same
period a year ago at a much lower rate than the Company's revenues for such
quarter increased.
EBITDA increased 48.8 percent from $14.6 million for the third quarter of
fiscal 2000 to $21.7 million for the third quarter of fiscal 2001. EBITDA
margin as a percentage of revenue decreased between the third fiscal quarter
of 2000 and the third fiscal quarter of 2001, primarily due to a change in
revenue composition. Revenues from the Engineered Products and sales and
services segments recognized for the recent quarter comprised a much higher
percentage of the Company's total revenue and the margin contribution of the
Engineered Products and sales and services segments is much lower compared to
that of rental revenues primarily due to the lower capital investment
requirements of the Engineered Products and sales and services segments.
"The GCSI acquisition, which we closed on September 15, 2000, is working
out very well," stated Universal Compression President and Chief Executive
Officer, Stephen A. Snider. "We have realized the expected synergies more
quickly than anticipated while continuing to grow GCSI's rental base."
International rental revenues totaled $4.4 million in the third quarter of
fiscal 2001, compared with $3.9 million in the same quarter last year, an
increase of 13.6 percent. International rental represented 7.4 percent of
total revenues for the quarter and international rental margin increased from
$2.5 million to $3.4 million. At quarter end, Universal had approximately
60,000 horsepower under contract internationally.
"Our performance was strong this quarter," Mr. Snider added. "We
increased the size of our rental fleet while increasing rental margin and
utilization of our equipment. We have remained focused on our operations
while managing activities involved in the pending Weatherford Global
acquisition."
On October 24, 2000, the Company announced the signing of an agreement to
acquire Weatherford Global Compression (WGC), the gas compression services
division of Weatherford International. The combination will create the second
largest natural gas compression services provider with an aggregate of
approximately 1,800,000 horsepower. Consideration for WGC includes 13.75
million shares of Universal's common stock, which will represent approximately
48% of the outstanding shares of the combined company, and the assumption of
WGC's debt and operating leases. The transaction is subject to approval by
the Company's stockholders, financing conditions, and other customary closing
conditions.
On January 2, 2001, Universal Compression, Inc. commenced a cash tender
offer for all of its outstanding 9 7/8% Senior Discount Notes due 2008. In
conjunction with the tender offer, the consent of holders of the Notes is
being solicited to approve certain amendments to the indenture governing the
Notes to eliminate substantially all of the restrictive covenants contained in
the indenture. The tender offer and consent solicitation are subject to the
terms and conditions in the Offer to Purchase and Consent Solicitation
Statement dated January 2, 2001. Receipt of the requisite consents is not
required for the Company to effect the acquisition of WGC.
There can be no assurance that the tender offer and consent solicitation
or the acquisition of WGC will be consummated.
Universal will host a conference call at 11:00 am Central Time, 12:00 noon
Eastern Time, on January 17 to discuss results from the third fiscal quarter
as well as updates on the WGC acquisition 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 ( http://www.vcall.com ) at least 15 minutes prior to the
designated start time and following the directions provided there including
entering "Universal Compression" or "UCO" in the box located at the top of the
web page. This will allow time to install any software needed to access the
call.
The entire conference call will be archived at www.vcall.com
( http://www.vcall.com ) through January 24.
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 successful completion of
proposed acquisitions, integration of recent acquisitions and the demand for
Universal's products and services. These 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.
UNIVERSAL COMPRESSION HOLDINGS, INC.
UNAUDITED CONSOLIDATED BALANCE SHEET
(IN THOUSANDS)
As of December 31,
2000
ASSETS
Current Assets:
Cash and cash equivalents $ 7,442
Accounts receivable, net 30,931
Current portion of notes receivable 3,190
Inventories 20,523
Current deferred tax asset 227
Other 1,451
Total current assets 63,764
Plant, Property and Equipment:
Rental Equipment 366,182
Other P P & E 28,085
Less: accumulated depreciation (50,610)
Net property, plant and equipment 343,657
Goodwill, net of accumulated amortization 130,464
Notes receivable 5,048
Other non-current assets, net 8,190
Non-current deferred tax asset 7,509
151,211
Total assets $ 558,632
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable, trade $ 20,371
Accrued liabilities 13,180
Current portion of long-term debt and capital
lease obligation 3,097
Total current liabilities 36,648
Capital lease obligation 4,870
Other liabilities 44,731
Non-current deferred tax liability 2,806
Long-term debt 204,184
Total liabilities 293,239
Commitments and Contingencies
Stockholders' Equity:
Series A preferred stock -
Common stock 147
Class A non-voting common stock -
Treasury stock (135)
Additional paid-in capital 279,339
Retained deficit (13,958)
Total stockholders' equity 265,393
Total liabilities and stockholders' equity $ 558,632
UNIVERSAL COMPRESSION HOLDINGS, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Three Three
Months Months Nine Months Nine Months
Ended Ended Ended Ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2000 1999 2000 1999
Revenues:
Rentals $36,172 $25,311 $91,127 $72,174
Sales 23,800 8,349 42,201 30,223
Other 42 69 299 128
Total revenues 60,014 33,729 133,627 102,525
Costs and expenses:
Rentals, exclusive
of depreciation
and amortization 12,259 9,049 31,132 26,153
Cost of sales,
exclusive of
depreciation and
amortization 21,332 6,900 36,360 25,650
Depreciation and
amortization 7,726 7,001 21,903 18,679
Selling, general and
administrative 4,747 4,004 11,971 12,658
Operating lease 3,539 -- 6,223 --
Interest expense 5,372 8,832 18,597 25,278
Non-recurring charges -- -- 7,059 --
Total costs and
expenses 54,975 5,786 133,245 108,418
Income (loss) before
income taxes and
extraordinary items 5,039 2,057) 382 (5,893)
Income taxes (benefit) 1,909 (781) 163 (1,801)
Income (loss) before
extraordinary items $3,130 $(1,276) $219 $(4,092)
Extraordinary loss, net
of $3,759
income tax benefit -- -- (6,264) --
Net income (loss) $3,130 $(1,276) $(6,045) $(4,092)
Weighted average common
and common equivalent
shares outstanding:
Basic 14,666 -- 12,342 --
Diluted 15,052 -- 12,714 --
Earnings per share
- basic:
Income before
extraordinary items $0.21 $-- $0.02 $--
Extraordinary loss -- -- (0.51) --
Net income (loss) $0.21 $-- $(0.49) $--
Earnings per share
- diluted:
Income before
extraordinary items $0.21 $-- $0.02 $--
Extraordinary loss -- -- (0.49) --
Net income (loss) $0.21 $-- $(0.47) $--
UNIVERSAL COMPRESSION HOLDINGS, INC.
UNAUDITED SEGMENTED INFORMATION
(IN THOUSANDS)
THREE THREE
MONTHS MONTHS
ENDED ENDED
DECEMBER 31, DECEMBER 31,
2000 1999
Revenues
Domestic Rental and
Maintenance $31,747 $21,416
International Rental and
Maintenance 4,425 3,896
Engineered Products 17,329 4,977
Corporate and Other 6,513 3,440
Total $60,014 $33,729
Gross Margins
Domestic Rental and
Maintenance $20,526 $13,735
International Rent 3,387 2,528
Engineered Products 1,705 725
Corporate and Other 755 713
Total $26,373 $17,701
Selling, General, and Administrative $4,747 $3,215
SG&A % of Revenue 7.9% 9.5%
EBITDA $21,676 $14,565
EBITDA % of Revenue 36.1% 43.2%
Margin percent
Domestic Rent 64.7% 64.1%
International Rent 76.5% 64.9%
Fabrication 9.8% 14.6%
Other 11.6% 20.7%
Total 43.9% 52.5%
SELECTED BALANCE SHEET INFORMATION AS OF DECEMBER 31, 2000
AND OTHER INFORMATION FOR QUARTER ENDED DECEMBER 31, 2000
(IN THOUSANDS)
Debt $212,151 $373,481
Operating Lease Balance $154,611 N/A
Capital Expenditures $17,209 $9,672
Average Horsepower Available
Domestic 768,536 574,570
International 59,736 50,451
Percent Utilized
Domestic 87.9% 80.2%
International 97.1% 98.1%
Total 88.6% 81.6%
EBITDA is defined as net income plus income taxes, interest expense,
leasing expense, management fees, depreciation and amortization.
SOURCE Universal Compression Holdings, Inc.
CONTACT: Jeffrey Todd, Manager-Investor Relations of Universal Compression Holdings, 713-335-7464; or General Inquiries, Mike Arneth of The Financial Relations Board, 312-640-6734