HOUSTON, July 27 /PRNewswire-FirstCall/ -- Universal Compression Holdings,
Inc. (NYSE: UCO), a leading provider of natural gas compression services,
today reported fiscal 2005 first quarter net income of $11.8 million, or
$0.37 per diluted share. Results in the quarter included a gain of
$3.2 million on a pretax basis or $0.06 per diluted share on an after-tax
basis related to the termination of interest rate swaps and a charge of
$0.5 million on a pretax basis or $0.01 per diluted share on an after-tax
basis related to debt extinguishment costs. Excluding these items, net income
was $10.1 million, or $0.32 per diluted share.
The Company reported net income of $11.7 million, or $0.37 per diluted
share, in the fiscal 2004 fourth quarter and a net loss of $2.0 million, or
$0.06 per diluted share, in the fiscal 2004 first quarter. The fiscal 2004
first quarter results included charges of $15.8 million on a pretax basis or
$0.31 per diluted share on an after-tax basis related to debt extinguishment
and facility consolidation costs. Excluding these charges, fiscal 2004 first
quarter net income was $7.7 million, or $0.25 per diluted share.
Revenue was $184.9 million in the fiscal 2005 first quarter compared to
$190.7 million in the fiscal 2004 fourth quarter and $152.2 million in the
fiscal 2004 first quarter. EBITDA, as adjusted (as defined below), was
$55.1 million in the fiscal 2005 first quarter compared to $58.0 million in
the fiscal 2004 fourth quarter and $52.5 million in the fiscal 2004 first
quarter.
"The activity levels for our contract compression fleet increased
throughout the first fiscal quarter and there is also a healthy demand for our
fabrication and aftermarket services. New business development activity
includes recently awarded long-term contracts for approximately
45,000 horsepower of new units expected to commence operations in Latin
America in six to twelve months. Looking ahead, the outlook for fiscal 2005
continues to be positive due to strong industry conditions. With this
favorable environment, our goal remains to achieve continuing year-over-year
growth in earnings per share," said Stephen A. Snider, Universal's President
and Chief Executive Officer.
"During the first fiscal quarter, our financial position was enhanced and
interest expense going forward decreased as we utilized excess cash to reduce
total debt from $884 million at March 31, 2004 to $793 million at June 30,
2004. With this debt reduction, our debt to capitalization ratio dropped to
below 50%. With a continuing strong level of cash provided by operating
activities, we expect to internally fund our capital expenditure requirements
in fiscal 2005," added Michael Anderson, Universal's Senior Vice President and
Chief Financial Officer.
Guidance
For the three months ending September 30, 2004, the Company expects
revenues to be $185 million to $195 million and earnings per diluted share to
be $0.36 to $0.40. For the twelve months ending March 31, 2005, the Company
confirms its previous full year guidance and expects revenues of $725 million
to $775 million and earnings per diluted share of $1.50 to $1.65, excluding
the gain on termination of interest rate swaps and debt extinguishment costs.
Including these items, the Company expects earnings per diluted share of
$1.55 to $1.70 in fiscal year 2005. With its new projects, the Company's
capital expenditures are now expected to be $110 million to $130 million in
fiscal 2005.
Conference Call
Universal will host a conference call today, July 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/ajwz407960281gf12.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 and excluding gain on termination
of interest rate swaps), 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
June 30, March 31, June 30,
2004 2004 2003
Revenue:
Domestic contract compression $70,973 $70,968 $69,199
International contract
compression 22,746 21,397 19,684
Fabrication 57,362 62,655 29,260
Aftermarket services 33,793 35,690 34,084
Total revenue 184,874 190,710 152,227
Costs and expenses:
Domestic contract compression -
direct costs 26,265 25,746 24,624
International contract
compression - direct costs 4,913 4,440 4,199
Fabrication - direct costs 53,336 56,148 29,056
Aftermarket services - direct
costs 26,612 27,588 26,149
Depreciation and amortization 22,673 22,246 20,986
Selling, general and
administrative 18,215 18,165 15,926
Interest expense 16,817 17,599 19,918
Foreign currency (gain) loss (358) 102 (1,049)
Other (income) expense 417 642 (181)
Debt extinguishment costs 475 505 14,397
Gain on termination of interest
rate swaps (3,197) --- ---
Facility consolidation costs --- --- 1,404
Total costs and expenses 166,168 173,181 155,429
Income (loss) before income taxes 18,706 17,529 (3,202)
Income taxes (benefit) 6,921 5,804 (1,233)
Net income (loss) $11,785 $11,725 $(1,969)
Weighted average common and common
equivalent shares outstanding:
Basic 31,248 30,998 30,775
Diluted 31,880 31,769 30,775
Earnings (loss) per share:
Basic $0.38 $0.38 $(0.06)
Diluted $0.37 $0.37 $(0.06)
UNIVERSAL COMPRESSION HOLDINGS, INC.
UNAUDITED SUPPLEMENTAL INFORMATION
(Dollars in thousands)
Three Months Ended
June 30, March 31, June 30,
2004 2004 2003
Revenue:
Domestic contract compression $70,973 $70,968 $69,199
International contract
compression 22,746 21,397 19,684
Fabrication 57,362 62,655 29,260
Aftermarket services 33,793 35,690 34,084
Total $184,874 $190,710 $152,227
Gross Profit:
Domestic contract compression $44,708 $45,222 $44,575
International contract
compression 17,833 16,957 15,485
Fabrication 4,026 6,507 204
Aftermarket services 7,181 8,102 7,935
Total $73,748 $76,788 $68,199
Selling, General and Administrative $18,215 $18,165 $15,926
% of Revenue 10% 10% 10%
EBITDA, as adjusted $55,116 $57,981 $52,454
% of Revenue 30% 30% 34%
Capital Expenditures $20,344 $18,105 $16,743
Profit Margin:
Domestic contract compression 63% 64% 64%
International contract
compression 78% 79% 79%
Fabrication 7% 10% 1%
Aftermarket services 21% 23% 23%
Total 40% 40% 45%
Reconciliation of GAAP to Non-GAAP
Financial Information:
Net income (loss) $11,785 $11,725 $(1,969)
Income taxes (benefit) 6,921 5,804 (1,233)
Depreciation and amortization 22,673 22,246 20,986
Interest expense 16,817 17,599 19,918
Foreign currency (gain) loss (358) 102 (1,049)
Facility consolidation costs --- --- 1,404
Debt extinguishment costs 475 505 14,397
Gain on termination of interest
rate swaps (3,197) --- ---
EBITDA, as adjusted (A) $55,116 $57,981 $52,454
June 30, March 31, June 30,
2004 2004 2003
Debt (B) $792,665 $884,442 $890,179
Stockholders' Equity $813,508 $799,235 $750,515
Total Debt to Capitalization 49.4% 52.5% 54.3%
(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) Debt includes capital lease obligations.
UNIVERSAL COMPRESSION HOLDINGS, INC.
UNAUDITED SUPPLEMENTAL INFORMATION
(Horsepower in thousands)
Three Months Ended
June 30, March 31, June 30,
2004 2004 2003
Total Horsepower Available
(at period end):
Domestic contract compression 1,899 1,904 1,959
International contract
compression 424 417 408
Total 2,323 2,321 2,367
Average Contracted Horsepower:
Domestic contract compression 1,626 1,630 1,637
International contract
compression 388 372 344
Total 2,014 2,002 1,981
Horsepower Utilization:
Spot (at period end) 87.6% 86.1% 85.0%
Average 86.7% 86.4% 84.3%
Fabrication Backlog (in millions) $81 $88 $81
SOURCE Universal Compression Holdings, Inc.
-0- 07/27/2004
/CONTACT: David Oatman, Vice President, Investor Relations of Universal
Compression Holdings, Inc., +1-713-335-7460/
/Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20011008/UCOLOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com /
/Web site: http://www.universalcompression.com /
/Audio: http://www.firstcallevents.com/service/ajwz407960281gf12.html /
(UCO)
CO: Universal Compression Holdings, Inc.
ST: Texas
IN: OIL
SU: ERN ERP CCA MAV
GN-AP
-- DATU015 --
8342 07/27/2004 08:01 EDT http://www.prnewswire.com