View all news

Universal Compression Reports Fourth Quarter and Fiscal Year Results

May, 23, 2001

HOUSTON, May 23 /PRNewswire/ -- Universal Compression Holdings, Inc. (NYSE: UCO), a leading provider of natural gas compression services, today reported fiscal 2001 fourth quarter net income of $5.9 million, or $0.26 per diluted share, excluding special charges associated with the recent acquisition of Weatherford Global Compression Services, L.P. ("WGC"), compared to a loss of $1.9 million in the fourth quarter of last year. EBITDA (net income plus income taxes, interest expense, leasing expense, management fees, depreciation and amortization, excluding non-recurring items and extraordinary gains and losses) was $34.4 million, an increase of 128 percent compared to $15.1 million in the prior year fourth quarter period. Revenue was $99.1 million for the quarter, an increase of 192 percent compared to $33.9 million in the prior year.

The Company's results improved significantly over the prior quarter ended December 31, 2000, with EBITDA and net income, excluding special charges, up 59 percent and 89 percent, respectively.

For the year ended March 31, 2001, net income, excluding special charges, was $10.5 million, or $0.70 per diluted share, compared to a loss of $6.0 million in the prior year. The Company had revenue of $232.8 million and EBITDA of $88.6 million, compared to revenue of $136.4 million and EBITDA of $55.6 million in the prior year.

"Universal's financial performance reflects benefits from its growth strategy and continuing strong demand for natural gas compression services. The integration of Weatherford Global Compression is progressing nicely. Approximately three-fourths of the expected operating synergies of $20 million were realized by March 31st, and the remainder is expected to be achieved during fiscal 2002," said Stephen A. Snider, President and Chief Executive Officer. "There are many opportunities in the compressor rental, fabrication and parts and service businesses. With an enhanced market position and continuation of today's healthy industry conditions, the Company expects further strong improvement in its financial results in fiscal 2002," added Snider.

Fourth quarter results include approximately $4.8 million in special charges relating to the WGC acquisition. The special charges were non- recurring items of $1.6 million for Universal transition and severance costs, and extraordinary losses, net of income taxes, of $3.2 million for the elimination of deferred debt and lease costs related to the financing restructured at the time of the acquisition. The combined impact of these charges resulted in net income of $1.7 million, or $0.07 per diluted share, in the fourth quarter and a net loss of $4.4 million, or $0.29 per diluted share, for fiscal year 2001.

The implementation of growth strategies has enhanced Universal's competitive position by adding quality equipment and services, key new markets and business segments, experienced personnel and important customer relationships. The Company increased its rental compressor fleet to approximately 1.9 million horsepower at March 31, 2001 from approximately 690,000 horsepower at March 31, 2000. Universal acquired WGC, with a fleet of over 950,000 horsepower, on February 9th, and IEW Compression, Inc., with a fleet of approximately 26,000 horsepower, on February 28th. The results of these acquisitions are reflected in the Company's financial results starting from the date of acquisition.

Segment Information

Rental revenue was $58.1 million, an increase of 123 percent from the prior year. The horsepower utilization rate at the end of the quarter was 88 percent compared to 84 percent in the prior year. As a percentage of total Company revenue, rentals were 59 percent in the fourth quarter compared to 77 percent in the comparable prior year period. International rental revenue was $9.7 million, an increase of 139 percent from the prior year. At fiscal year- end, the Company had approximately 233,000 horsepower under contract internationally.

Fabrication revenue was $28.5 million, an increase of 429 percent from the prior year. Fabrication backlog was $34 million at March 31, 2001, up from $30 million at December 31, 2000 and $11 million at March 31, 2000. As a result of the WGC acquisition, the parts and service segment has become a more significant part of the Company's business. Parts and service revenue was $12.6 million, an increase of 425 percent from the prior year. As a percentage of total Company revenue, compared to the prior year fabrication sales increased to 29 percent from 16 percent and parts-related business rose to 13 percent from 7 percent.

"By supplementing its compressor rental business with related products and services, Universal now offers customers more solutions to their natural gas compression needs," said Snider. "Domestic highlights for the quarter included strong demand in the Rocky Mountains, Mid-Continent and offshore in the Gulf of Mexico. Internationally, the Company significantly increased its operations in Argentina, Canada and Asia as a result of acquisition activity," added Snider.

Conference Call

Universal will host a conference call at 10:00 am Central Time, 11:00 am Eastern Time, on May 23 to discuss results from the fiscal year 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 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 through May 30.

Universal is headquartered in Houston, Texas and is the second largest natural gas compression services company in the world in terms of horsepower. The Company provides a full range of rental, sales, operations, maintenance and fabrication services and products to the domestic and international 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 include integration of acquired businesses (including Weatherford Global Compression and IEW), future financial and operational results, competition, general economic conditions and demand for natural gas, ability to manage and continue growth, risks associated with international operations, 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 STATEMENTS OF OPERATIONS
                   (In thousands, except per share amounts)


                                     Three Months            Twelve Months
                                    Ended March 31,         Ended March 31,
                                    2001        2000       2001         2000
    Revenue:
       Rentals                   $58,108     $26,121   $149,235      $98,295
       Fabrication                28,471       5,384     61,779       25,258
       Parts and service          12,559       2,393     21,452       12,742
       Other                          (4)         26        295          154
           Total revenue          99,134      33,924    232,761      136,449

    Costs and expenses:
       Cost of sales - rental     21,213       9,199     52,345       35,352
       Cost of sales -
        fabrication               24,019       4,484     52,738       21,900
       Cost of sales - parts
        and service               10,335       1,808     17,976       10,043
       Depreciation and
        amortization              11,588       7,327     33,491       26,006
       Selling, general and
        administrative             9,121       4,139     21,092       16,797
       Operating lease             8,220         -       14,443          -
       Interest expense            4,623       9,050     23,220       34,327
       Non-recurring charges       1,640         -        8,699          -
           Total costs and
            expenses              90,759      36,007    224,004      144,425

    Income (loss) before income
     taxes and extraordinary
       items                       8,375      (2,083)     8,757       (7,976)

    Income taxes (benefit)         3,482        (193)     3,645       (1,994)

       Income (loss) before
        extraordinary items       $4,893     $(1,890)    $5,112      $(5,982)

       Extraordinary loss, net
        of income tax benefit     (3,239)        -       (9,503)         -

       Net income (loss)          $1,654     $(1,890)   $(4,391)     $(5,982)

    Weighted average common and
     common equivalent shares
        outstanding:
       Basic                      22,264         -       14,760          -

       Diluted                    22,653         -       15,079          -

    Earnings per share - basic:
       Income before
        extraordinary items        $0.22        $-        $0.35         $-
       Extraordinary loss          (0.15)        -        (0.64)         -
       Net income (loss)           $0.07        $-       $(0.30)        $-

    Earnings per share -
     diluted:
       Income before
        extraordinary items        $0.22        $-        $0.34         $-
       Extraordinary loss          (0.14)        -        (0.63)         -
       Net income (loss)           $0.07        $-       $(0.29)        $-



                     UNIVERSAL COMPRESSION HOLDINGS, INC.
                      UNAUDITED SUPPLEMENTAL INFORMATION
                                (In thousands)

                                                         Three Months Ended
                                                              March 31,
                                                          2001          2000
    Revenue:
      Domestic rentals                                   $48,369       $22,050
      International rentals                                9,739         4,071
      Fabrication                                         28,471         5,384
      Parts and service                                   12,559         2,393
      Other                                                   (4)           26
        Total                                            $99,134       $33,924

    Gross Profit:
      Domestic rentals                                   $30,177       $13,842
      International rentals                                6,718         3,080
      Fabrication                                          4,452           900
      Parts and service                                    2,224           585
      Other                                                   (4)           26
        Total                                            $43,567       $18,433

    Selling, General and Administrative                   $9,121        $4,139
      % of Revenue                                          9.2%         12.2%

    EBITDA                                               $34,446       $15,104
      % of Revenue                                         34.7%         44.5%

    Profit Margin:
      Domestic rentals                                     62.4%         62.8%
      International rentals                                69.0%         75.7%
      Fabrication                                          15.6%         16.7%
      Parts and service                                    17.7%         24.4%
        Total                                              43.9%         54.3%

EBITDA 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.

                                                             At March 31,
                                                          2001          2000

    Debt                                                $215,107      $377,485
    Operating Leases                                    $527,500          $-
    Shareholders' Equity                                $652,571       $74,677

                    MAKE YOUR OPINION COUNT -  Click Here
               http://tbutton.prnewswire.com/prn/11690X74657639

SOURCE Universal Compression Holdings, Inc.
CONTACT: David Oatman, Director, Investor Relations of Universal Compression Holdings, 713-335-7460; or General Inquiries, Jeffrey Wilhoit of The Financial Relations Board BSMG Worldwide, 312-640-6757

Multimedia Files:

Categories: Press Releases
View all news