HOUSTON, Oct 26, 2004 /PRNewswire-FirstCall via COMTEX/ -- Universal Compression Holdings,
Inc. (NYSE: UCO), a leading provider of natural gas compression services,
today reported net income of $12.2 million, or $0.38 per diluted share, in the
fiscal 2005 second quarter compared to $9.3 million, or $0.30 per diluted
share, in the fiscal 2004 second quarter. Results in the fiscal 2004 second
quarter included a charge of $0.4 million on a pretax basis, or $0.01 per
diluted share on an after-tax basis, related to facility consolidation costs.
Excluding this item, fiscal 2004 second quarter net income was $9.6 million,
or $0.31 per diluted share.
Net income was $11.8 million, or $0.37 per diluted share, in the fiscal
2005 first quarter, including 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, fiscal 2005 first quarter net income was $10.1 million,
or $0.32 per diluted share.
Revenue was a record $191.9 million in the fiscal 2005 second quarter
compared to $184.9 million in the fiscal 2005 first quarter and $175.7 million
in the fiscal 2004 second quarter. EBITDA, as adjusted (as defined below),
was a record $59.5 million in the fiscal 2005 second quarter compared to
$55.1 million in the fiscal 2005 first quarter and $55.3 million in the fiscal
2004 second quarter.
"We are pleased with our fiscal 2005 second quarter financial results
which included record levels of revenue and EBITDA and a 23% improvement in
diluted earnings per share compared to the prior year period results excluding
facility consolidation costs. This strong earnings growth was driven by an
increased gross profit contribution from each of our contract compression,
aftermarket services and fabrication business segments. Contract compression
fleet utilization improved steadily throughout the fiscal 2005 second quarter,
increasing from 87.6% at June 30, 2004 to 89.8% at September 30, 2004. We are
positive about the outlook for the second half of fiscal 2005 due to
continuing strong natural gas industry conditions and a healthy demand for our
products and services," said Stephen A. Snider, Universal's President and
Chief Executive Officer.
"With strong industry conditions and higher utilization rates, we are
investing in our contract compression fleet through the fabrication of new
units and the repackaging of existing units, both domestically and
internationally. Additional investments in our fleet will continue to be
measured against and consistent with our disciplined focus on asset
utilization and return on capital," added Michael Anderson, Universal's Chief
Financial Officer.
Guidance
For the three months ending December 31, 2004, the Company expects
revenues to be $185 million to $195 million and earnings per diluted share to
be $0.39 to $0.43. For the twelve months ending March 31, 2005, the Company
expects revenues of $760 million to $780 million and earnings per diluted
share of $1.53 to $1.63, excluding the gain on termination of interest rate
swaps and debt extinguishment costs. Including these items, the Company
expects earnings per diluted share of $1.58 to $1.68 in fiscal year 2005.
Conference Call
Universal will host a conference call today, October 26, 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://phx.corporate-
ir.net/phoenix.zhtml?p=irol-eventDetails&c=121184&eventID=951531 at least 15
minutes prior to the start of the call. The replay of the call will be
available at the Web site www.universalcompression.com .
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
September 30, June 30, September 30,
2004 2004 2003
Revenue:
Domestic contract compression $73,178 $70,973 $69,716
International contract compression 22,872 22,746 20,720
Fabrication 57,772 57,362 49,678
Aftermarket services 38,062 33,793 35,568
Total revenue 191,884 184,874 175,682
Costs and expenses:
Domestic contract compression -
direct costs 26,798 26,265 26,965
International contract
compression - direct costs 5,412 4,913 4,812
Fabrication - direct costs 51,772 53,336 44,113
Aftermarket services - direct costs 30,204 26,612 27,880
Depreciation and amortization 23,123 22,673 20,915
Selling, general and administrative 18,245 18,215 17,324
Interest expense 16,154 16,817 17,960
Foreign currency (gain) loss 882 (358) 884
Other (income) expense (56) 417 (714)
Debt extinguishment costs --- 475 ---
Gain on termination of interest
rate swaps --- (3,197) ---
Facility consolidation costs --- --- 417
Total costs and expenses 172,534 166,168 160,556
Income before income taxes 19,350 18,706 15,126
Income taxes 7,160 6,921 5,823
Net income $12,190 $11,785 $9,303
Weighted average common and common
equivalent shares outstanding:
Basic 31,336 31,248 30,797
Diluted 32,045 31,880 31,108
Earnings per share:
Basic $0.39 $0.38 $0.30
Diluted $0.38 $0.37 $0.30
UNIVERSAL COMPRESSION HOLDINGS, INC.
UNAUDITED SUPPLEMENTAL INFORMATION
(Dollars in thousands)
Three Months Ended
September 30, June 30, September 30,
2004 2004 2003
Revenue:
Domestic contract compression $73,178 $70,973 $69,716
International contract compression 22,872 22,746 20,720
Fabrication 57,772 57,362 49,678
Aftermarket services 38,062 33,793 35,568
Total $191,884 $184,874 $175,682
Gross Profit:
Domestic contract compression $46,380 $44,708 $42,751
International contract compression 17,460 17,833 15,908
Fabrication 6,000 4,026 5,565
Aftermarket services 7,858 7,181 7,688
Total $77,698 $73,748 $71,912
Selling, General and Administrative $18,245 $18,215 $17,324
% of Revenue 10% 10% 10%
EBITDA, as adjusted $59,509 $55,116 $55,302
% of Revenue 31% 30% 31%
Capital Expenditures $39,240 $20,344 $20,577
Profit Margin:
Domestic contract compression 63% 63% 61%
International contract compression 76% 78% 77%
Fabrication 10% 7% 11%
Aftermarket services 21% 21% 22%
Total 40% 40% 41%
Reconciliation of GAAP to Non-GAAP
Financial Information:
Net income $12,190 $11,785 $9,303
Income taxes 7,160 6,921 5,823
Depreciation and amortization 23,123 22,673 20,915
Interest expense 16,154 16,817 17,960
Foreign currency (gain) loss 882 (358) 884
Facility consolidation costs --- --- 417
Debt extinguishment costs --- 475 ---
Gain on termination of interest
rate swaps --- (3,197) ---
EBITDA, as adjusted (A) $59,509 $55,116 $55,302
September 30, June 30, September 30,
2004 2004 2003
Debt (B) $792,966 $792,665 $889,673
Stockholders' Equity $832,604 $813,508 $762,866
Total Debt to Capitalization 48.8% 49.4% 53.8%
(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
Sept. 30, June 3, Sept. 30,
2004 2004 2003
Total Horsepower Available
(at period end):
Domestic contract compression 1,896 1,899 1,936
International contract compression 437 424 410
Total 2,333 2,323 2,346
Average Contracted Horsepower:
Domestic contract compression 1,665 1,626 1,662
International contract compression 401 388 364
Total 2,066 2,014 2,026
Horsepower Utilization:
Spot (at period end) 89.8% 87.6% 86.9%
Average 88.9% 86.7% 85.9%
Fabrication Backlog (in millions) $66 $81 $101
SOURCE Universal Compression Holdings, Inc.
David Oatman, Vice President, Investor Relations of Universal
Compression Holdings, Inc., +1-713-335-7460
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