HOUSTON, Jan 25, 2005 /PRNewswire-FirstCall via COMTEX/ -- Universal Compression Holdings,
Inc. (NYSE: UCO), a leading provider of natural gas compression services,
today reported net income of $14.1 million, or $0.44 per diluted share, in the
fiscal 2005 third quarter compared to $12.2 million, or $0.38 per diluted
share, in the fiscal 2005 second quarter and $11.7 million, or $0.38 per
diluted share, in the fiscal 2004 third quarter.
Revenue was a record $192.7 million in the fiscal 2005 third quarter
compared to $191.9 million in the fiscal 2005 second quarter and
$170.2 million in the fiscal 2004 third quarter. EBITDA, as adjusted (as
defined below), was a record $61.0 million in the fiscal 2005 third quarter
compared to $59.5 million in the fiscal 2005 second quarter and $58.1 million
in the fiscal 2004 third quarter.
"Universal achieved record levels of revenue and EBITDA in the fiscal 2005
third quarter, which was highlighted by increased contract compression
activity in both domestic and international markets. With the continued
implementation of our growth strategies, we have recorded sequential
improvement in earnings per diluted share during the first three quarters of
fiscal 2005," said Stephen A. Snider, Universal's President and Chief
Executive Officer. "Looking ahead, we have a positive outlook for the first
half of calendar 2005 due to continuing strong worldwide market conditions and
expected contributions from previously announced new operations in Latin
America and Canada."
"The recent closing of our new credit facility significantly enhances the
Company's financial position. We plan to use this facility to redeem the
outstanding $440 million of 8.875% senior secured notes on February 15, 2005,
which will result in lower ongoing interest expense and extended debt
maturities," added Michael Anderson, Universal's Chief Financial Officer.
Guidance
For the three months ending March 31, 2005, the Company expects revenue to
be $185 million to $195 million and earnings per diluted share to be $0.44 to
$0.48, excluding debt extinguishment costs of approximately $26 million on a
pretax basis, or $0.52 per diluted share on an after-tax basis, related to the
redemption of the 8.875% notes. Including debt extinguishment costs, the
Company expects a net loss per diluted share of $0.08 to $0.04 in the three
months ending March 31, 2005. For the twelve months ending March 31, 2005,
the Company expects revenue of $755 million to $765 million and earnings per
diluted share of $1.58 to $1.62, excluding the gain on termination of interest
rate swaps and debt extinguishment costs. Including these items, the Company
expects earnings per diluted share of $1.11 to $1.15 in fiscal year 2005.
Conference Call
Universal will host a conference call today, January 25, 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=995295 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
Dec. 31, Sept. 30, Dec. 31,
2004 2004 2003
Revenue:
Domestic contract compression $75,170 $73,178 $71,067
International contract
compression 27,810 22,872 20,789
Fabrication 50,823 57,772 42,092
Aftermarket services 38,873 38,062 36,219
Total revenue 192,676 191,884 170,167
Costs and expenses:
Domestic contract compression -
direct costs 27,071 26,798 25,073
International contract
compression - direct costs 6,427 5,412 4,981
Fabrication - direct costs 48,605 51,772 38,480
Aftermarket services - direct
costs 30,917 30,204 29,053
Depreciation and amortization 23,611 23,123 21,504
Selling, general and
administrative 19,224 18,245 16,101
Interest expense 16,821 16,154 17,994
Foreign currency (gain) loss (238) 882 (466)
Other (income) expense (589) (56) (1,630)
Total costs and expenses 171,849 172,534 151,090
Income before income taxes 20,827 19,350 19,077
Income taxes 6,702 7,160 7,344
Net income $14,125 $12,190 $11,733
Weighted average common and common
equivalent shares outstanding:
Basic 31,406 31,336 30,841
Diluted 32,082 32,045 31,243
Earnings per share:
Basic $0.45 $0.39 $0.38
Diluted $0.44 $0.38 $0.38
UNIVERSAL COMPRESSION HOLDINGS, INC.
UNAUDITED SUPPLEMENTAL INFORMATION
(Dollars in thousands)
Three Months Ended
Dec. 31, Sept. 30, Dec. 31,
2004 2004 2003
Revenue:
Domestic contract compression $75,170 $73,178 $71,067
International contract
compression 27,810 22,872 20,789
Fabrication 50,823 57,772 42,092
Aftermarket services 38,873 38,062 36,219
Total $192,676 $191,884 $170,167
Gross Profit:
Domestic contract compression $48,099 $46,380 $45,994
International contract
compression 21,383 17,460 15,808
Fabrication 2,218 6,000 3,612
Aftermarket services 7,956 7,858 7,166
Total $79,656 $77,698 $72,580
Selling, General and Administrative $19,224 $18,245 $16,101
% of Revenue 10% 10% 9%
EBITDA, as adjusted $61,021 $59,509 $58,109
% of Revenue 32% 31% 34%
Capital Expenditures $45,797 $39,240 $31,153
Profit Margin:
Domestic contract compression 64% 63% 65%
International contract
compression 77% 76% 76%
Fabrication 4% 10% 9%
Aftermarket services 20% 21% 20%
Total 41% 40% 43%
Reconciliation of GAAP to Non-GAAP
Financial Information:
Net income $14,125 $12,190 $11,733
Income taxes 6,702 7,160 7,344
Depreciation and amortization 23,611 23,123 21,504
Interest expense 16,821 16,154 17,994
Foreign currency (gain) loss (238) 882 (466)
EBITDA, as adjusted (A) $61,021 $59,509 $58,109
Dec. 31, Sept. 30, Dec. 31,
2004 2004 2003
Debt (B) $847,057 $792,966 $889,262
Stockholders' Equity $856,334 $832,604 $779,800
Total Debt to Capitalization 49.7% 48.8% 53.3%
(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
Dec. 31, Sept. 30, Dec. 31,
2004 2004 2003
Total Horsepower Available (at period
end):
Domestic contract compression 1,908 1,896 1,900
International contract
compression 518 437 401
Total 2,426 2,333 2,301
Average Contracted Horsepower:
Domestic contract compression 1,696 1,665 1,661
International contract
compression 442 401 363
Total 2,138 2,066 2,024
Horsepower Utilization:
Spot (at period end) 89.9% 89.8% 87.0%
Average 89.8% 88.9% 86.9%
Fabrication Backlog (in millions) $83 $66 $92
SOURCE Universal Compression Holdings, Inc.
David Oatman, Vice President, Investor Relations of Universal Compression Holdings,
Inc., +1-713-335-7460
http://www.prnewswire.com