HOUSTON, May 20 /PRNewswire-FirstCall/ -- Universal Compression Holdings,
Inc. (NYSE: UCO), a leading provider of natural gas compression services,
today reported fiscal 2004 fourth quarter net income of $12.0 million, or
$0.38 per diluted share, before charges in the quarter of $0.5 million on a
pretax basis or $0.01 per diluted share on an after-tax basis, related to debt
extinguishment costs. Including the charges, the Company had net income of
$11.7 million, or $0.37 per diluted share. Net income was $11.7 million, or
$0.38 per diluted share, in the fiscal 2004 third quarter and $6.9 million, or
$0.22 per diluted share, in the fiscal 2003 fourth quarter.
Revenues were $190.7 million in the fiscal 2004 fourth quarter compared to
$170.2 million in the fiscal 2004 third quarter and $154.6 million in the
prior year period. EBITDA, as adjusted (as defined below), was $58.0 million
in the fiscal 2004 fourth quarter compared to $58.1 million in the fiscal 2004
third quarter and $51.0 million in the fiscal 2003 fourth quarter.
For the year ended March 31, 2004, net income was $41.3 million, or $1.32
per diluted share, before charges in the fiscal year of $16.7 million on a
pretax basis or $0.34 per diluted share on an after-tax basis, related to debt
extinguishment and facility consolidation costs. Including the charges, the
Company had net income of $30.8 million, or $0.98 per diluted share, in fiscal
2004. Net income was $33.5 million, or $1.08 per diluted share in the prior
year. The Company had revenues of $688.8 million and EBITDA of $223.8 million
in fiscal 2004, compared to revenues of $625.2 million and EBITDA of
$201.2 million in the prior year.
"In fiscal 2004 we achieved a 10% increase in revenues and a 23% increase
in net income before debt extinguishment and facility consolidation charges
compared to the prior fiscal year through the execution of the Company's
focused business strategy. We improved the utilization of our contract
compression fleet, achieved higher fabrication and aftermarket services
activity and expanded in domestic and international markets. We have a
positive outlook for fiscal 2005 with the continuing implementation of our
growth strategies and favorable market conditions. The growing worldwide
economy is expected to boost the demand for natural gas and associated
compression products and services," said Stephen A. Snider, Universal's
President and Chief Executive Officer.
"With our disciplined capital management, cash reserves increased by
approximately $50 million while outstanding debt declined by $61 million
during fiscal 2004. Capital expenditures declined from approximately
$121 million in fiscal 2003 to approximately $87 million in fiscal 2004 as we
focused on redeploying idle assets. We will continue to seek to increase our
financial returns by optimizing current operations, lowering our cost of
capital and targeting attractive returns on new investments. With a strong
financial position, we are well positioned to take advantage of market
opportunities in fiscal 2005," added Michael Anderson, Universal's Senior Vice
President and Chief Financial Officer.
Guidance
For the three months ending June 30, 2004, the Company expects revenues to
be $175 million to $185 million and earnings per diluted share to be $0.31 to
$0.35. For the twelve months ending March 31, 2005, the Company expects
revenues of $725 million to $775 million and earnings per diluted share of
$1.50 to $1.65. Capital expenditures are expected to be $90 million to
$110 million in fiscal 2005.
Conference Call
Universal will host a conference call today, May 20, 2004 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 live over the
Internet to provide interested persons the opportunity to listen. 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 "Investor Home" in the
"Investor Relations" section) or
http://www.firstcallevents.com/service/ajwz406375678gf12.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), operating lease expense,
depreciation and amortization, foreign currency gains or losses, excluding
non-recurring items (including facility consolidation costs), and
extraordinary gains or 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 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)
Twelve Months
Three Months Ended Ended
March 31, Dec. 31, March 31, March 31,
2004 2003 2003 2004 2003
Revenues:
Domestic contract
compression $70,968 $71,067 $67,788 $280,951 $265,465
International
contract
compression 21,397 20,789 16,428 82,589 66,505
Fabrication 62,655 42,092 34,881 183,685 162,678
Aftermarket services 35,690 36,219 35,492 141,561 130,570
Total revenue 190,710 170,167 154,589 688,786 625,218
Costs and expenses:
Domestic contract
compression -
direct costs 25,746 25,073 24,422 102,408 95,597
International
contract
compression -
direct costs 4,440 4,981 2,674 18,430 12,736
Fabrication - direct
costs 56,148 38,480 31,099 167,797 146,603
Aftermarket services
- direct costs 27,588 29,053 27,712 110,670 102,314
Depreciation and
amortization 22,246 21,504 19,619 85,650 63,706
Selling, general and
administrative 18,165 16,101 17,539 67,516 67,944
Operating lease --- --- --- --- 46,071
Interest expense 17,599 17,994 20,247 73,475 36,421
Foreign currency
(gain) loss 102 (466) (156) (529) 459
Other (income) expense 642 (1,630) 179 (1,883) (1,126)
Debt extinguishment
costs 505 --- --- 14,903 ---
Facility consolidation
costs --- --- --- 1,821 ---
Total costs and
expenses 173,181 151,090 143,335 640,258 570,725
Income before income
taxes 17,529 19,077 11,254 48,528 54,493
Income taxes 5,804 7,344 4,331 17,741 20,975
Net income $11,725 $11,733 $6,923 $30,787 $33,518
Weighted average
common and common
equivalent shares
outstanding:
Basic 30,998 30,841 30,709 30,848 30,665
Diluted 31,769 31,243 30,943 31,283 30,928
Earnings per share:
Basic $0.38 $0.38 $0.23 $1.00 $1.09
Diluted $0.37 $0.38 $0.22 $0.98 $1.08
UNIVERSAL COMPRESSION HOLDINGS, INC.
UNAUDITED SUPPLEMENTAL INFORMATION
(In thousands)
Three Months Ended Twelve Months Ended
March 31, December 31, March 31, March 31,
2004 2003 2003 2004 2003
Revenues:
Domestic
contract
compression $70,968 $71,067 $67,788 $280,951 $265,465
International
contract
compression 21,397 20,789 16,428 82,589 66,505
Fabrication 62,655 42,092 34,881 183,685 162,678
Aftermarket
services 35,690 36,219 35,492 141,561 130,570
Total $190,710 $170,167 $154,589 $688,786 $625,218
Gross Profit:
Domestic
contract
compression $45,222 $45,994 $43,366 $178,543 $169,868
International
contract
compression 16,957 15,808 13,754 64,159 53,769
Fabrication 6,507 3,612 3,782 15,888 16,075
Aftermarket
services 8,102 7,166 7,780 30,891 28,256
Total $76,788 $72,580 $68,682 $289,481 $267,968
Selling,
General and
Administrative $18,165 $16,101 $17,539 $67,516 $67,944
% of Revenue 10% 9% 11% 10% 11%
EBITDA, as
adjusted $57,981 $58,109 $50,964 $223,848 $201,150
% of Revenue 30% 34% 33% 32% 32%
Capital
Expenditures $18,105 $31,153 $21,602 $86,557 $120,750
Profit Margin:
Domestic
contract
compression 64% 65% 64% 64% 64%
International
contract
compression 79% 76% 84% 78% 81%
Fabrication 10% 9% 11% 9% 10%
Aftermarket
services 23% 20% 22% 22% 22%
Total 40% 43% 44% 42% 43%
Reconciliation of
GAAP to Non-GAAP
Financial
Information:
Net income $11,725 $11,733 $6,923 $30,787 $33,518
Income taxes 5,804 7,344 4,331 17,741 20,975
Depreciation and
amortization 22,246 21,504 19,619 85,650 63,706
Operating lease --- --- --- --- 46,071
Interest
expense 17,599 17,994 20,247 73,475 36,421
Foreign currency
(gain) loss 102 (466) (156) (529) 459
Facility
Consolidation
Costs --- --- --- 1,821 ---
Debt
Extinguishment
Costs 505 --- --- 14,903 ---
EBITDA, as
adjusted
(A)(B) $57,981 $58,109 $50,964 $223,848 $201,150
March 31, December 31, March 31,
2004 2003 2003
Debt (C) $884,442 $889,262 $945,155
Shareholders'
Equity $799,235 $779,800 $744,451
Total Debt to
Capitalization 52.5% 53.3% 55.9%
(A) Management believes disclosure of EBITDA, as adjusted, a non-GAAP
measure, provides useful information to investors because, when
viewed with our GAAP results and accompanying reconciliations, it
provides a more complete understanding of our performance than GAAP
results alone. Management uses EBITDA, as adjusted, as a
supplemental measure to review current period operating performance,
a comparability measure, a performance measure for period to period
comparisons and a valuation measure.
(B) 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.
(C) Debt includes capital lease obligations.
UNIVERSAL COMPRESSION HOLDINGS, INC.
UNAUDITED SUPPLEMENTAL INFORMATION
(Horsepower in thousands)
Twelve Months
Three Months Ended Ended
March 31, Dec. 31, March 31, March 31,
2004 2003 2003 2004 2003
Total Horsepower Available
(at period end):
Domestic contract
compression 1,904 1,900 1,957 1,904 1,957
International contract
compression 417 401 368 417 368
Total 2,321 2,301 2,325 2,321 2,325
Average Contracted
Horsepower:
Domestic contract
compression 1,630 1,661 1,631 1,646 1,602
International contract
compression 372 363 317 360 311
Total 2,002 2,024 1,948 2,006 1,913
Horsepower Utilization:
Spot (at period end) 86.1% 87.0% 83.6% 86.1% 83.6%
Average 86.4% 86.9% 83.5% 85.8% 83.3%
Fabrication Backlog (in millions) $88 $92 $56 $88 $56
SOURCE Universal Compression Holdings, Inc.