HOUSTON, July 28 /PRNewswire-FirstCall/ -- Universal Compression Holdings,
Inc. (NYSE: UCO), a leading provider of natural gas compression services,
today reported fiscal 2004 first quarter net income of $7.7 million, or
$0.25 per diluted share, before charges in the quarter of $15.8 million on a
pretax basis, or $0.31 per diluted share on an after-tax basis, related to
previously announced debt extinguishment and facility consolidation costs.
Including the charges, the Company had a net loss of $2.0 million, or $0.06
per diluted share. Net income was $6.9 million, or $0.22 per diluted share,
in the fiscal 2003 fourth quarter and $10.4 million, or $0.33 per diluted
share, in the fiscal 2003 first quarter.
Revenues were $152.2 million in the fiscal 2004 first quarter compared to
$154.6 million in the fiscal 2003 fourth quarter and $151.5 million in the
prior year period. EBITDA, as adjusted (as defined below), was $52.5 million
in the fiscal 2004 first quarter compared to $51.0 million in the fiscal 2003
fourth quarter and $51.8 million in the fiscal 2003 first quarter.
"Our fleet utilization increased to 85% at June 30, 2003 from a recent low
of 82% in September 2002, but is still below the utilization of 91% achieved
in August 2001," said Stephen A. Snider, Universal's President and Chief
Executive Officer. "We are optimistic about further improvement in activity
levels this year as higher industry exploration activity leads to new business
opportunities."
Capital Structure
During the June 2003 quarter the Company refinanced approximately
$230 million of 9 7/8% senior discount notes due 2008, funded by a new
offering of $175 million of 7 1/4% senior notes due 2010 and excess cash.
Total debt declined from $945 million at March 31, 2003 to $890 million at
June 30, 2003. Capital expenditures were approximately $17 million in the
fiscal 2004 first quarter compared to $22 million in the fiscal 2003 fourth
quarter and $26 million in the prior year period.
"We are committed to improving the utilization of our compressor fleet
and, wherever possible, will deploy idle units for new projects instead of
building new capacity," said Michael Anderson, Senior Vice President and Chief
Financial Officer. "In fiscal 2004 we expect that operating cash flow after
capital expenditure requirements will continue to be positive."
Guidance
For the three months ending September 30, 2003, the Company expects
revenues to be $160 million to $170 million and earnings per diluted share to
be $0.28 to $0.33. For the twelve months ending March 31, 2004, the Company
confirms its previous full year guidance and expects revenues of $650 million
to $700 million and earnings per diluted share of $1.20 to $1.40, excluding
the charges related to debt extinguishment and facility consolidation costs.
Including these charges, the Company expects earnings per diluted share of
$0.89 to $1.09 in fiscal year 2004.
First Quarter Statistics
-- Average fleet horsepower utilized was 1,981,000 in the first quarter
compared to 1,948,000 in the fourth quarter and 1,883,000 in the
prior year period. Spot utilization was 85% at June 30, 2003
compared to 84% at March 31, 2003 and December 31, 2002. Average
utilization was 84% in the first quarter, 83% in the fourth quarter
and 84% in the prior year period.
-- Domestic contract compression gross margins were 64% in the first and
fourth quarters and 65% in the prior year period. International
contract compression gross margins were 79% compared to 84% in the
fourth quarter and 81% in the prior year period.
-- Total contract compression horsepower was 2,367,000 at June 30, 2003
compared to 2,325,000 at March 31, 2003 and 2,254,000 at
June 30, 2002. International contract compression horsepower was
407,000 at June 30, 2003 compared to 368,000 at March 31, 2003 and
356,000 at June 30, 2002.
-- Fabrication revenues were $29.3 million compared to $34.9 million in
the prior quarter and $35.5 million in the prior year period;
fabrication gross margins were 1% compared to 11% in the prior
quarter and 9% in the prior year period. Fabrication backlog was
$81 million at June 30, 2003 compared to $56 million at
March 31, 2003 and $96 million at June 30, 2002.
-- Aftermarket services gross margins were 23% in the first quarter, 22%
in the fourth quarter and 24% in the prior year period.
Conference Call
Universal will host a conference call tomorrow, July 29, 2003 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 approximately 90 days 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/ajwz385860612gf12.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 for approximately 90 days.
EBITDA, as adjusted, is defined as net income plus income taxes, interest
expense (including debt extinguishment costs), leasing expense, depreciation
and amortization, foreign currency gains or losses, excluding non-recurring
items (including facility consolidation costs), and extraordinary gains or
losses. Beginning with the quarter ended September 30, 2002, the Company
changed its definition of EBITDA, as adjusted, to exclude foreign currency
gains or losses. All periods prior to September 30, 2002 have been
recalculated from amounts previously disclosed by the Company to be consistent
with this new definition of EBITDA, as adjusted.
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 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,
2003 2003 2002
Revenues:
Domestic contract compression $69,199 $67,788 $65,491
International contract compression 19,684 16,428 17,279
Fabrication 29,260 34,881 35,475
Aftermarket services 34,084 35,492 33,219
Total revenue 152,227 154,589 151,464
Costs and expenses:
Domestic contract compression -
direct costs 24,624 24,422 22,960
International contract
compression - direct costs 4,199 2,674 3,234
Fabrication - direct costs 29,056 31,099 32,349
Aftermarket services - direct costs 26,149 27,712 25,203
Depreciation and amortization 20,986 19,619 14,050
Selling, general and administrative 15,926 17,539 16,245
Operating lease --- --- 15,345
Interest expense 19,918 20,247 5,711
Debt extinguishment costs 14,397 --- ---
Foreign currency (gain) loss (1,049) (156) (171)
Other (income) expense (181) 179 (290)
Facility consolidation costs 1,404 --- ---
Total costs and expenses 155,429 143,335 134,636
Income (loss) before income taxes (3,202) 11,254 16,828
Income taxes (benefit) (1,233) 4,331 6,477
Net income (loss) $(1,969) $6,923 $10,351
Weighted average common and common
equivalent shares outstanding:
Basic 30,775 30,709 30,619
Diluted 31,048 30,943 30,940
Earnings (loss) per share:
Basic $(0.06) $0.23 $0.34
Diluted $(0.06) $0.22 $0.33
UNIVERSAL COMPRESSION HOLDINGS, INC.
UNAUDITED SUPPLEMENTAL INFORMATION
(Dollars in thousands)
Three Months Ended
June 30, March 31, June 30,
2003 2003 2002
Revenues:
Domestic contract compression $69,199 $67,788 $65,491
International contract compression 19,684 16,428 17,279
Fabrication 29,260 34,881 35,475
Aftermarket services 34,084 35,492 33,219
Total $152,227 $154,589 $151,464
Gross Profit:
Domestic contract compression $44,575 $43,366 $42,531
International contract compression 15,485 13,754 14,045
Fabrication 204 3,782 3,126
Aftermarket services 7,935 7,780 8,016
Total $68,199 $68,682 $67,718
Selling, General and Administrative $15,926 $17,539 $16,245
% of Revenue 10% 11% 11%
EBITDA, as adjusted * $52,454 $50,964 $51,763
% of Revenue 34% 33% 34%
Capital Expenditures $16,743 $21,602 $26,290
Average Utilization 84% 83% 84%
Profit Margin:
Domestic contract compression 64% 64% 65%
International contract compression 79% 84% 81%
Fabrication 1% 11% 9%
Aftermarket services 23% 22% 24%
Total 45% 44% 45%
Reconciliation of GAAP to Non-GAAP
Financial Information:
Net income $(1,969) $6,923 $10,351
Income taxes (1,233) 4,331 6,477
Depreciation and amortization 20,986 19,619 14,050
Operating lease --- --- 15,345
Interest expense 19,918 20,247 5,711
Debt extinguishment costs 14,397 --- ---
Foreign currency (gain) / loss (1,049) (156) (171)
Facility consolidation costs 1,404 --- ---
EBITDA, as adjusted * $52,454 $50,964 $51,763
June 30, March 31, June 30,
2003 2003 2002
Debt ** $890,179 $945,155 $232,198
Operating Leases $--- $--- $708,500
Shareholders' Equity $750,514 $744,451 $703,222
Total Debt to Capitalization *** 54.3% 55.9% 57.2%
* Beginning with the quarter ended September 30, 2002, the Company
changed its definition of EBITDA, as adjusted, to exclude foreign
currency gains or losses. All periods prior to September 30, 2002
have been recalculated from amounts previously disclose
** Debt includes capital lease obligations.
*** Total Debt includes Debt and Operating Leases.
SOURCE Universal Compression Holdings, Inc.