HOUSTON, Sept. 20 /PRNewswire-FirstCall/ -- Universal Compression
Holdings, Inc. (NYSE: UCO) today announced revised earnings guidance for its
second fiscal quarter and full fiscal year. For the three months ending
September 30, 2002, the Company is estimating earnings per diluted share of
$0.23 to $0.25 and revenues of $157 million to $159 million. For the twelve
months ending March 31, 2003, the Company is estimating earnings per diluted
share of $1.15 to $1.25 and revenues of $640 million to $655 million. EBITDA,
as adjusted (as defined below), is expected to be $46 million to $48 million
for the second quarter and $200 million to $210 million for fiscal year 2003.
"The North American energy market remains sluggish as our customers have
postponed new projects and repair and maintenance activities. Lower than
expected revenues and the incurrence of expenses related to units planned to
commence operation later in the fiscal year have contributed to reduced profit
margins," said Stephen A. Snider, President and Chief Executive Officer. "We
are encouraged by orders for the reactivation of currently idle units in the
United States and the expected startup of delayed new units in Latin America.
Most of these units are expected to commence operation in the late third or
fourth quarter of this fiscal year. We estimate our average fleet horsepower
utilization will be approximately 83% in the second quarter, 84% in the third
quarter and 86% in the fourth quarter of fiscal year 2003."
"Universal's financial position remains strong. We expect to be self-
funding in fiscal year 2003 due to a strong level of cash from operating
activities and lower than previously expected capital expenditures. Capital
expenditures, including compressor fleet maintenance requirements, are now
expected to be $130 million to $135 million in the current fiscal year
compared to $188 million in the prior year. We will also continue to actively
manage our cost structure in this challenging business environment to enhance
profitability without impairing our ability to continue to deliver quality
products and services," added Snider.
Expected Second Quarter Segment Information
The following estimates were used to calculate the second quarter revenue,
EBITDA and earnings guidance above:
-- Domestic contract compression revenues of $65-66 million and gross
margin of 61-63%.
-- International contract compression revenues of $16-17 million and
gross margin of 80-82%.
-- Fabrication revenues of $45-47 million and gross margin of 9-10%.
-- Aftermarket services revenues of $29-31 million and gross margin of
16-20%.
Expected Fiscal Year 2003 Segment Information
The following estimates were used to calculate the fiscal year 2003
revenue, EBITDA and earnings guidance above:
-- Domestic contract compression revenues of $265-268 million and gross
margin of 62-63%.
-- International contract compression revenues of $69-71 million and
gross margin of 80%.
-- Fabrication revenues of $175-185 million and gross margin of 10-11%.
-- Aftermarket services revenues of $130-135 million and gross margin
of 20-22%.
The Company plans to hold its second quarter fiscal 2003 earnings
conference call during the week of October 28, 2002.
EBITDA, as adjusted, is defined as net income plus income taxes, interest
expense, lease expense, depreciation and amortization, excluding non-recurring
items and extraordinary gains and losses.
Universal Compression, headquartered in Houston, Texas, is a leading
natural gas compression services company, providing a full range of contract
compression, 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 acquisitions,
the demand for Universal's products and services and worldwide economic and
political conditions. 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.
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SOURCE Universal Compression Holdings, Inc.
Web site: http: //www.universalcompression.com
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CONTACT: David Oatman, Vice President, Investor Relations and Planning of Universal Compression Holdings, Inc., +1-713-335-7460
CAPTION: UCOLOGO UNIVERSAL COMPRESSION HOLDINGS LOGO Universal, headquartered in Houston, Texas, is a leading natural gas compression services company, providing a full range of contract compression, sales, operations, maintenance and fabrication services to the domestic and international natural gas industry. (PRNewsFoto)[TK] HOUSTON, TX USA 10/08/2001