Record Annual Revenue and EBITDA, as Adjusted HOUSTON, May 24 /PRNewswire-FirstCall/ -- Universal Compression Holdings,
Inc. (NYSE: UCO), a leading provider of natural gas compression services,
today reported a fiscal 2005 fourth quarter net loss of $4.5 million, or
$0.14 per diluted share, including charges of $26.1 million on a pretax basis,
or $0.53 per diluted share on an after-tax basis, related to debt
extinguishment costs and $3.1 million on a pretax basis or $0.06 per diluted
share on an after-tax basis related to an asset impairment expense on a former
fabrication facility. Excluding these items, net income was $14.8 million, or
$0.45 per diluted share.
The Company reported net income of $14.1 million, or $0.44 per diluted
share, in the fiscal 2005 third quarter and $11.7 million, or $0.37 per
diluted share, in the fiscal 2004 fourth quarter. The fiscal 2004 fourth
quarter results included 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 this item, fiscal 2004 fourth quarter net income was
$12.0 million, or $0.38 per diluted share.
Revenue was a record $193.6 million in the fiscal 2005 fourth quarter
compared to $192.7 million in the fiscal 2005 third quarter and $190.7 million
in the fiscal 2004 fourth quarter. EBITDA, as adjusted (as defined below),
was $56.9 million in the fiscal 2005 fourth quarter compared to $61.0 million
in the fiscal 2005 third quarter and $58.0 million in the fiscal 2004 fourth
quarter. EBITDA, as adjusted, for the recently completed fourth quarter
included the $3.1 million fabrication facility impairment charge.
For the year ended March 31, 2005, net income was $33.6 million, or
$1.04 per diluted share, including charges of $29.6 million on a pretax basis,
or $0.61 per diluted share on an after-tax basis, related to debt
extinguishment and asset impairment costs and a gain of $3.2 million on a
pretax basis, or $0.07 per diluted share on an after-tax basis, related to the
termination of interest rate swaps. Excluding these items, the Company had
record net income of $51.1 million, or $1.59 per diluted share, in fiscal
2005. For the year ended March 31, 2004, net income was $30.8 million, or
$0.98 per diluted share, including charges 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. Excluding these items, net
income was $41.3 million, or $1.32 per diluted share, in fiscal 2004.
In fiscal 2005, revenues were $763.1 million and EBITDA, as adjusted, was
$232.5 million, both records for the Company. EBITDA, as adjusted, included
the $3.1 million fabrication facility impairment charge. Revenues were
$688.8 million and EBITDA was $223.8 million in the prior year.
"We are pleased with our improved financial performance in fiscal 2005,
which included an 11% increase in revenue and a 20% increase in earnings per
share before debt extinguishment, asset impairment and facility consolidation
costs, and gain on termination of interest rate swaps compared to the prior
fiscal year. We improved the utilization of our existing asset base while
enhancing our overall market position by selectively expanding our contract
compression fleet and extending our sales and service infrastructure abroad,"
said Stephen A. Snider, Universal's President and Chief Executive Officer.
"We have a positive outlook for fiscal 2006 due to continuing strong market
conditions in the United States and international markets and the continued
implementation of our focused business strategy."
"In the fourth fiscal quarter we significantly lowered our ongoing
interest expense and extended debt maturities by redeeming the outstanding
$440 million of 8.875% senior notes with funding provided by our new credit
facility," added Michael Anderson, Universal's Chief Financial Officer. "We
have a strong financial position and are well positioned to pursue attractive
growth opportunities in our fiscal 2006 capital expenditure program, which is
expected to be funded from internally generated sources."
Guidance
For the three months ending June 30, 2005, the Company expects revenues to
be $190 million to $200 million and earnings per diluted share to be $0.48 to
$0.52. For the twelve months ending March 31, 2006, the Company expects
revenues of $775 million to $800 million and earnings per diluted share of
$2.05 to $2.20. Capital expenditures, net of sale proceeds, are expected to
be $125 million to $140 million in fiscal 2006, representing a modest increase
over fiscal 2005 spending.
Conference Call
Universal will host a conference call today, May 24, 2005 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=1064010 at least
15 minutes prior to the start of the call. The replay of the call will be
available at the website http://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 Twelve Months Ended
March 31, Dec. 31, March 31, March 31,
2005 2004 2004 2005 2004
Revenues:
Domestic contract
compression $76,918 $75,170 $70,968 $296,239 $280,951
International contract
compression 28,739 27,810 21,397 102,167 82,589
Fabrication 48,037 50,823 62,655 213,994 183,685
Aftermarket services 39,942 38,873 35,690 150,670 141,561
Total revenue 193,636 192,676 190,710 763,070 688,786
Costs and expenses:
Domestic contract
compression
- direct costs 29,240 27,071 25,746 109,374 102,408
International contract
compression
- direct costs 6,967 6,427 4,440 23,719 18,430
Fabrication
- direct costs 44,996 48,605 56,148 198,709 167,797
Aftermarket services
- direct costs 33,281 30,917 27,588 121,014 110,670
Depreciation and
amortization 24,390 23,611 22,246 93,797 85,650
Selling, general and
administrative 20,072 19,224 18,165 75,756 67,516
Interest expense 14,396 16,821 17,599 64,188 73,475
Foreign currency
(gain) loss 103 (238) 102 389 (529)
Other (income) expense (897) (589) 642 (1,125) (1,883)
Debt extinguishment
costs 26,068 --- 505 26,543 14,903
Facility consolidation
costs --- --- --- --- 1,821
Gain on termination of
interest rate swaps --- --- --- (3,197) ---
Asset impairment costs 3,080 --- --- 3,080 ---
Total costs and
expenses 201,696 171,849 173,181 712,247 640,258
Income (loss) before
income taxes (8,060) 20,827 17,529 50,823 48,528
Income tax expense
(benefit) (3,570) 6,702 5,804 17,213 17,741
Net income (loss) $(4,490) $14,125 $11,725 $33,610 $30,787
Weighted average common
and common equivalent
shares outstanding:
Basic 31,580 31,406 30,998 31,392 30,848
Diluted 31,580 32,082 31,769 32,224 31,283
Earnings per share:
Basic $(0.14) $0.45 $0.38 $1.07 $1.00
Diluted $(0.14) $0.44 $0.37 $1.04 $0.98
UNIVERSAL COMPRESSION HOLDINGS, INC.
UNAUDITED SUPPLEMENTAL INFORMATION
(In thousands)
Three Months Ended Twelve Months Ended
March 31, December 31, March 31, March 31,
2005 2004 2004 2005 2004
Revenues:
Domestic
contract
compression $76,918 $75,170 $70,968 $296,239 $280,951
International
contract
compression 28,739 27,810 21,397 102,167 82,589
Fabrication 48,037 50,823 62,655 213,994 183,685
Aftermarket
services 39,942 38,873 35,690 150,670 141,561
Total $193,636 $192,676 $190,710 $763,070 $688,786
Gross Profit:
Domestic
contract
compression $47,678 $48,099 $45,222 $186,865 $178,543
International
contract
compression 21,772 21,383 16,957 78,448 64,159
Fabrication 3,041 2,218 6,507 15,285 15,888
Aftermarket
services 6,661 7,956 8,102 29,656 30,891
Total $79,152 $79,656 $76,788 $310,254 $289,481
Selling, General
and
Administrative $20,072 $19,224 $18,165 $75,756 $67,516
% of Revenue 10% 10% 10% 10% 10%
EBITDA, as
adjusted (A) $56,897 $61,021 $57,981 $232,543 $223,848
% of Revenue 29% 32% 30% 30% 32%
Capital
Expenditures $38,284 $45,797 $18,105 $143,665 $86,557
Proceeds from
Sale of PP&E 6,003 13,408 8,133 24,070 40,468
Net Capital
Expenditures $32,281 $32,389 $9,972 $119,595 $46,089
Profit Margin:
Domestic
contract
compression 62% 64% 64% 63% 64%
International
contract
compression 76% 77% 79% 77% 78%
Fabrication 6% 4% 10% 7% 9%
Aftermarket
services 17% 20% 23% 20% 22%
Total 41% 41% 40% 41% 42%
Reconciliation of
GAAP to Non-GAAP
Financial Information:
Net income
(loss) $(4,490) $14,125 $11,725 $33,610 $30,787
Income tax
expense
(benefit) (3,570) 6,702 5,804 17,213 17,741
Depreciation and
amortization 24,390 23,611 22,246 93,797 85,650
Interest
expense 14,396 16,821 17,599 64,188 73,475
Foreign currency
(gain) loss 103 (238) 102 389 (529)
Facility
consolidation
costs --- --- --- --- 1,821
Debt
extinguishment
costs 26,068 --- 505 26,543 14,903
Gain on
termination of
interest rate
swap --- --- --- (3,197) ---
EBITDA, as
adjusted (A) $56,897 $61,021 $57,981 $232,543 $223,848
March 31, December 31, March 31,
2005 2004 2004
Debt $858,096 $847,057 $884,442
Shareholders'
Equity $861,672 $856,334 $799,235
Total Debt to
Capitalization 49.9% 49.7% 52.5%
(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.
UNIVERSAL COMPRESSION HOLDINGS, INC.
UNAUDITED SUPPLEMENTAL INFORMATION
(Horsepower in thousands)
Three Months Ended Twelve Months Ended
March 31, Dec. 31, March 31, March 31,
2005 2004 2004 2005 2004
Total Horsepower Available
(at period end):
Domestic contract
compression 1,925 1,908 1,904 1,925 1,904
International
contract
compression 544 518 417 544 417
Total 2,469 2,426 2,321 2,469 2,321
Average Contracted Horsepower:
Domestic contract
compression 1,717 1,696 1,630 1,675 1,646
International
contract
compression 484 442 372 430 360
Total 2,201 2,138 2,002 2,105 2,006
Horsepower Utilization:
Spot (at period end) 90.4% 89.9% 86.1% 90.4% 86.1%
Average 90.0% 89.8% 86.4% 88.8% 85.8%
Fabrication Backlog
(in millions) $69 $83 $88 $69 $88
SOURCE Universal Compression Holdings, Inc.
05/24/2005
CONTACT: David Oatman, Vice President, Investor Relations of Universal
Compression Holdings, Inc., +1-713-335-7460