HOUSTON, Jan. 27 /PRNewswire-FirstCall/ -- Universal Compression Holdings,
Inc. (NYSE: UCO), a leading provider of natural gas compression services,
today reported fiscal 2004 third quarter net income of $11.7 million, or
$0.38 per diluted share. The Company had net income of $9.3 million, or
$0.30 per diluted share, in the fiscal 2004 second quarter and $8.6 million,
or $0.28 per diluted share, in the fiscal 2003 third quarter.
Revenues were $170.2 million in the fiscal 2004 third quarter compared to
$175.7 million in the fiscal 2004 second quarter and $164.6 million in the
prior year period. EBITDA, as adjusted (as defined below), was $58.1 million
in the fiscal 2004 third quarter compared to $55.3 million in the fiscal 2004
second quarter and $50.2 million in the fiscal 2003 third quarter.
"We are pleased with our performance in the fiscal 2004 third quarter
which included a record level of EBITDA and a 36% increase in earnings per
share compared to the prior year period. We achieved sequential improvement
in earnings per share over the first three quarters of fiscal 2004 due largely
to improving industry conditions and better utilization of our contract
compression fleet. Our outlook for the first half of calendar 2004 remains
positive as our customers seek to enhance their natural gas production and
transportation capabilities," said Stephen A. Snider, Universal's President
and Chief Executive Officer.
"We have been able to strengthen our balance sheet while we improve our
financial results. Capital expenditures were $68 million in the first nine
months of fiscal 2004 compared to $99 million in the comparable year ago
period. Our financial liquidity continues to improve as we generate operating
cash flow in excess of capital expenditures," added Michael Anderson,
Universal's Chief Financial Officer.
Guidance
For the three months ending March 31, 2004, the Company expects revenues
to be $185 million to $195 million and earnings per diluted share to be $0.35
to $0.39. For the twelve months ending March 31, 2004, the Company expects
revenues of $683 million to $693 million and earnings per diluted share of
$1.29 to $1.33, excluding the charges related to debt extinguishment and
facility consolidation costs that occurred during the first half of the fiscal
year. Including these charges, the Company expects earnings per diluted share
of $0.97 to $1.01 in fiscal 2004. The Company expects capital expenditures
will be $90 million to $100 million in fiscal 2004 and that operating cash
flow after capital expenditures will be positive.
Conference Call
Universal will host a conference call today, January 27, 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/ajwz397161505gf12.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)
Three Months Ended
December 31, September 30, December 31,
2003 2003 2002
Revenues:
Domestic contract compression $71,067 $69,716 $67,065
International contract
compression 20,789 20,720 16,156
Fabrication 42,092 49,678 50,258
Aftermarket services 36,219 35,568 31,105
Total revenues 170,167 175,682 164,584
Costs and expenses:
Domestic contract compression
- direct costs 25,073 26,965 24,195
International contract
compression - direct costs 4,981 4,812 3,453
Fabrication - direct costs 38,480 44,113 45,576
Aftermarket services - direct
costs 29,053 27,880 24,609
Depreciation and amortization 21,504 20,915 15,726
Selling, general and
administrative 16,101 17,324 16,923
Operating lease -- -- 15,239
Interest expense 17,994 17,960 5,671
Foreign currency (gain) loss (466) 884 (353)
Other (income) (1,630) (714) (411)
Facility consolidation costs -- 417 --
Total costs and expenses 151,090 160,556 150,628
Income before income taxes 19,077 15,126 13,956
Income taxes 7,344 5,823 5,373
Net income $11,733 $9,303 $8,583
Weighted average common and common
equivalent shares outstanding:
Basic 30,841 30,797 30,668
Diluted 31,243 31,108 30,859
Earnings per share:
Basic $0.38 $0.30 $0.28
Diluted $0.38 $0.30 $0.28
UNIVERSAL COMPRESSION HOLDINGS, INC.
UNAUDITED SUPPLEMENTAL INFORMATION
(Dollars in thousands)
Three Months Ended
December 31, September 30, December 31,
2003 2003 2002
Revenues:
Domestic contract compression $71,067 $69,716 $67,065
International contract compression 20,789 20,720 16,156
Fabrication 42,092 49,678 50,258
Aftermarket services 36,219 35,568 31,105
Total $170,167 $175,682 $164,584
Gross Profit:
Domestic contract compression $45,994 $42,751 $42,870
International contract compression 15,808 15,908 12,703
Fabrication 3,612 5,565 4,682
Aftermarket services 7,166 7,688 6,496
Total $72,580 $71,912 $66,751
Selling, General and Administrative $16,101 $17,324 $16,923
% of Revenue 9% 10% 10%
EBITDA, as adjusted $58,109 $55,302 $50,239
% of Revenue 34% 31% 31%
Capital Expenditures $31,153 $20,577 $39,978
Profit Margin:
Domestic contract compression 65% 61% 64%
International contract compression 76% 77% 79%
Fabrication 9% 11% 9%
Aftermarket services 20% 22% 21%
Total 43% 41% 41%
Reconciliation of GAAP to Non-GAAP
Financial Information:
Net income $11,733 $9,303 $8,583
Income taxes 7,344 5,823 5,373
Depreciation and amortization 21,504 20,915 15,726
Operating lease -- -- 15,239
Interest expense 17,994 17,960 5,671
Foreign currency (gain) loss (466) 884 (353)
Facility consolidation costs -- 417 --
EBITDA, as adjusted $58,109 $55,302 $50,239
December 31, March 31, December 31,
2003 2003 2002
Debt * $889,262 $945,155 $945,052
Stockholders' Equity $779,800 $744,451 $708,534
Total Debt to Capitalization 53.3% 55.9% 57.2%
* Debt includes capital lease obligations.
UNIVERSAL COMPRESSION HOLDINGS, INC.
UNAUDITED SUPPLEMENTAL INFORMATION
(Horsepower in thousands)
Three Months Ended
December 31, September 30, December 31,
2003 2003 2002
Total Horsepower Available
(at period end):
Domestic contract compression 1,900 1,936 1,960
International contract compression 401 410 374
Total 2,301 2,346 2,334
Average Contracted Horsepower:
Domestic contract compression 1,661 1,662 1,625
International contract compression 363 364 319
Total 2,024 2,026 1,944
Horsepower Utilization:
Spot (at period end) 87.0% 86.9% 83.6%
Average 86.9% 85.9% 83.4%
Fabrication Backlog (in millions) $92 $101 $56
SOURCE Universal Compression Holdings, Inc.