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
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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