HOUSTON, July 24 /PRNewswire-FirstCall/ -- Universal Compression Holdings,
Inc. (NYSE: UCO), a leading provider of natural gas compression services,
today reported net income for its fiscal 2003 first quarter of $10.4 million,
or $0.33 per diluted share, compared to $10.5 million, or $0.37 per diluted
share, in the prior year period. Revenues were $151.5 million compared to
$140.4 million in the prior year period. EBITDA (net income plus income
taxes, interest expense, leasing expense, depreciation and amortization,
excluding non-recurring items and extraordinary gains or losses) was
$51.8 million in the current period compared to $46.8 million in the prior
year period.
As of June 30, 2002, we have reached agreement on new contract terms
relating to approximately 70% of our active fleet in Argentina. The favorable
impact of these settlements is included in the fiscal 2003 first quarter
results, rather than in the fiscal 2003 second quarter as previously
anticipated. This favorable impact included EBITDA of $2.5 million and net
income of $0.05 per diluted share, related to the fiscal 2003 first quarter,
and EBITDA of $2.1 million and net income of $0.04 per diluted share, related
to the fiscal 2002 fourth quarter. We expect to reach agreements regarding
substantially all of the remaining contracts in Argentina in the September
quarter.
"In the current quarter we continued our efforts to maximize operating
efficiencies in an environment of reduced energy service industry activity.
Our contract compression fleet utilization remained in the 84% area throughout
the quarter as expected," said Stephen A. Snider, Universal's President and
Chief Executive Officer. "We achieved gross margin improvements in our
contract compression and aftermarket services segments as we implemented
operational and system enhancements. We are working to maximize the
utilization of our existing contract compression fleet, and accordingly,
reduced our rate of investment in new units. Our cash position increased
significantly as a result of continuing strong cash flows from operations and
reduced capital expenditure levels."
First Quarter Highlights
-- At the end of the current quarter, total contract compression
horsepower increased to 2,254,000, up 17,000 compared to the prior
quarter and up
241,000 compared to the prior year. International contract
compression horsepower increased to 356,000, up 11,000 compared to
the prior quarter and 27,000 compared to the prior year.
-- Average fleet horsepower utilization for the current quarter was
84%, compared to 87% in the prior quarter and 89% a year ago.
-- In contract compression, domestic gross margins were 65% compared to
64% in the prior quarter and 63% in the prior year, while
international gross margins were 81% compared to 77% in the prior
quarter and 69% in the prior year.
-- In our fabrication segment, revenues were $35.5 million compared to
$66.9 million in the prior quarter and $32.2 million in the prior
year; gross margins were 9% compared to 11% in the prior quarter and
13% in the prior year. Fabrication backlog was $96 million, up from
$80 million at the end of the prior quarter and $47 million at the
end of the fiscal 2002 first quarter.
-- Aftermarket services gross margins were 24% compared to 22% in each
of the prior quarter and prior year periods.
Outlook
"Industry activity levels are relatively flat in North America, where we
believe the general market upturn will be later in the fiscal year than
previously anticipated," added Snider. "We are returning to more normal
business conditions in Argentina with the recent contract agreements, and our
fledgling Asia Pacific operation shows promise with significant fabrication
orders from a major customer in China."
Conference Call
Universal will host a conference call on Thursday, July 25, 2002 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
onto http://www.universalcompression.com (click "Company Overview" in the
"Company Information" section) or
http://www.firstcallevents.com/service/ajwz363089280gf12.html at least
15 minutes prior to the start of the call. A replay of the call will remain
available at the Web sites www.universalcompression.com and
http://www.prnewswire.com through August 1, 2002.
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.
UNIVERSAL COMPRESSION HOLDINGS, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Three Months Ended
June 30, March 31, June 30,
2002 2002 2001
Revenues:
Contract
compression $82,770 $80,653 $75,950
Fabrication 35,475 66,942 32,234
Aftermarket
services 33,219 40,346 32,177
Total revenue 151,464 187,941 140,361
Costs and expenses:
Cost of sales -
contract
compression 26,194 27,551 27,565
Cost of sales -
fabrication 32,349 59,397 28,038
Cost of sales -
aftermarket
services 25,203 31,552 25,237
Depreciation and
amortization 14,050 13,275 11,380
Selling, general
and administrative 16,245 16,267 12,676
Operating lease 15,345 15,047 12,593
Interest expense 5,711 5,555 5,532
Other (461) (331) 47
Total costs and
expenses 134,636 168,313 123,068
Income before income
taxes 16,828 19,628 17,293
Income taxes 6,477 7,309 6,748
Net income $10,351 $12,319 $10,545
Weighted average
common and common
equivalent shares
outstanding:
Basic 30,619 30,590 28,481
Diluted 30,940 30,823 28,811
Earnings per share:
Basic $0.34 $0.40 $0.37
Diluted $0.33 $0.40 $0.37
UNIVERSAL COMPRESSION HOLDINGS, INC.
UNAUDITED SUPPLEMENTAL INFORMATION
(In thousands)
Three Months Ended
June 30, March 31, June 30,
2002 2002 2001
Revenues:
Domestic contract
compression $65,491 $67,336 $61,919
International contract
compression 17,279 13,317 14,031
Fabrication 35,475 66,942 32,234
Aftermarket services 33,219 40,346 32,177
Total $151,464 $187,941 $140,361
Gross Profit:
Domestic contract
compression $42,531 $42,797 $38,749
International contract
compression 14,045 10,304 9,636
Fabrication 3,126 7,545 4,196
Aftermarket services 8,016 8,794 6,940
Total $67,718 $69,440 $59,521
Selling, General and
Administrative $16,245 $16,267 $12,676
% of Revenue 11% 9% 9%
EBITDA, as adjusted * $51,839 $53,567 $46,798
% of Revenue 34% 29% 33%
Profit Margin:
Domestic contract
compression 65% 64% 63%
International contract
compression 81% 77% 69%
Fabrication 9% 11% 13%
Aftermarket services 24% 22% 22%
Total 45% 37% 42%
* EBITDA, as adjusted, is defined as net income plus income taxes,
interest expense, leasing expense, depreciation and amortization,
excluding non-recurring items and extraordinary gains or losses.
June 30, March 31, June 30,
2002 2002 2001
Debt $232,198 $226,762 $224,532
Operating Leases $708,500 $708,500 $567,500
Shareholders' Equity $703,220 $700,344 $664,337
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SOURCE Universal Compression Holdings, Inc.
Web site: http: //www.universalcompression.com
Photo: NewsCom: http: //www.newscom.com/cgi-bin/prnh/20011008/UCOLOGO AP Archive: http://photoarchive.ap.org PRN Photo Desk, +1-888-776-6555 or +1-212-782-2840
Company News On-Call: http: //www.prnewswire.com/comp/157369.html
CONTACT: David Oatman, Vice President, Investor Relations and Planning of Universal Compression Holdings, Inc., +1-713-335-7460
Audio: http: //www.firstcallevents.com/service/ajwz363089280gf12.html
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