HOUSTON, July 27 /PRNewswire-FirstCall/ -- Universal Compression Holdings,
Inc. (NYSE: UCO), a leading provider of natural gas compression services,
today reported net income of $18.1 million, or $0.56 per diluted share, in the
fiscal 2006 first quarter compared to a net loss of $4.5 million, or $0.14 per
diluted share, in the fiscal 2005 fourth quarter and net income of $11.8
million, or $0.37 per diluted share, in the fiscal 2005 first quarter.
Revenue was a record $207.7 million in the fiscal 2006 first quarter
compared to $193.6 million in the fiscal 2005 fourth quarter and $184.9
million in the fiscal 2005 first quarter. EBITDA, as adjusted (as defined
below), was a record $65.2 million in the fiscal 2006 first quarter compared
to $56.9 million in the fiscal 2005 fourth quarter and $55.1 million in the
fiscal 2005 first quarter.
"We are pleased with our overall performance in the fiscal 2006 first
quarter, which included a 75% increase in earnings per share as compared to
the fiscal 2005 first quarter results before gain on termination of interest
rate swaps and debt extinguishment costs," said Stephen A. Snider, Universal's
President and Chief Executive Officer. "With continuing robust market
conditions, we are selectively adding new, large-horsepower units to our
contract compression fleet to meet customer requirements in domestic and
international markets."
Fiscal 2005 fourth quarter net income included 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.
Excluding these items, fiscal 2005 fourth quarter net income was $14.8
million, or $0.45 per diluted share. Fiscal 2005 first quarter net income
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,
fiscal 2005 first quarter net income was $10.1 million, or $0.32 per diluted
share.
"We are investing in key initiatives to help support the future growth of
our company. These initiatives include an increased marketing and business
development commitment targeted at aftermarket service and international
expansion, and a new company-wide enterprise resource planning system, which
is being implemented during fiscal 2006," added Michael Anderson, Universal's
Chief Financial Officer.
Guidance
The following statements are based on current expectations. These
statements are forward-looking, and actual results may differ materially.
Factors affecting these forward-looking statements are detailed below under
the section titled "Forward-Looking Statements." These statements do not
include the potential impact of any acquisition, disposition, merger, joint
venture, or other transactions that could occur in the future.
For the three months ending September 30, 2005, the Company expects
revenue to be $180 million to $190 million and earnings per diluted share to
be $0.51 to $0.55. For the twelve months ending March 31, 2006, the Company
now expects revenue of $800 million to $820 million and earnings per diluted
share of $2.15 to $2.30; previous guidance was revenue of $775 million to $800
million and earnings per diluted share of $2.05 to $2.20. The Company
continues to expect that capital expenditures, net of sale proceeds, will be
$125 million to $140 million in fiscal 2006.
Conference Call
Universal will host a conference call today, July 27, 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) at least 15 minutes prior to the start of the
call. The replay of the call will be available at the website
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), depreciation and amortization, foreign currency gains
or losses, excluding non-recurring items (including facility consolidation
costs), and extraordinary gains or losses.
Forward-Looking Statements
Statements about Universal's outlook and all other statements in this
release (and oral statements made regarding the subjects of this release,
including on the conference call announced herein) 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 factors that could cause results to differ
materially from those indicated by such forward-looking statements are the
worldwide supply and demand for natural gas; the demand for Universal's
products and services; our ability to implement and effect price increases for
our products and services; the ability of our competitors to capture market
share and our ability to retain or increase our market share; our ability to
manage the rising costs and availability of components and materials from our
vendors; changes in our strategic direction; changes in laws or regulatory
conditions in the U.S. and other countries in which we operate; our ability to
timely, properly and cost-effectively implement our enterprise resource
planning system; and changes in the economic conditions in the U.S. or other
countries in which we operate.
These forward-looking-statements are also affected by the risk factors and
forward-looking statements described in Universal's Annual Report on Form 10-K
for the year ended March 31, 2005 and those set forth from time to time in
Universal's filings with the Securities and Exchange Commission (SEC), which
are available through Universal's website and through the SEC's Electronic
Data Gathering and Analysis Retrieval System (EDGAR) at http://www.sec.gov.
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, 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.
UNIVERSAL COMPRESSION HOLDINGS, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
Three Months Ended
June 30, March 31, June 30,
2005 2005 2004
Revenue:
Domestic contract compression $79,672 $76,918 $70,973
International contract compression 30,300 28,739 22,746
Fabrication 55,836 48,037 57,362
Aftermarket services 41,876 39,942 33,793
Total revenue 207,684 193,636 184,874
Costs and expenses:
Domestic contract compression -
direct costs 27,776 29,240 26,265
International contract
compression - direct costs 7,907 6,967 4,913
Fabrication - direct costs 52,972 44,996 53,336
Aftermarket services - direct
costs 33,047 33,281 26,612
Depreciation and amortization 25,633 24,390 22,673
Selling, general and
administrative 20,438 20,072 18,215
Interest expense, net 12,460 14,396 16,817
Foreign currency (gain) loss (837) 103 (358)
Other (income) expense 352 (897) 417
Debt extinguishment costs - 26,068 475
Gain on termination of interest
rate swaps - - (3,197)
Asset impairment costs - 3,080 -
Total costs and expenses 179,748 201,696 166,168
Income (loss) before income taxes 27,936 (8,060) 18,706
Income tax expense (benefit) 9,800 (3,570) 6,921
Net income (loss) $18,136 $(4,490) $11,785
Weighted average common and common
equivalent shares outstanding:
Basic 31,800 31,580 31,248
Diluted 32,563 31,580 31,880
Earnings (loss) per share:
Basic $0.57 $(0.14) $0.38
Diluted $0.56 $(0.14) $0.37
UNIVERSAL COMPRESSION HOLDINGS, INC.
UNAUDITED SUPPLEMENTAL INFORMATION
(Dollars in thousands)
Three Months Ended
June 30, March 31, June 30,
2005 2005 2004
Revenue:
Domestic contract compression $79,672 $76,918 $70,973
International contract
compression 30,300 28,739 22,746
Fabrication 55,836 48,037 57,362
Aftermarket services 41,876 39,942 33,793
Total $207,684 $193,636 $184,874
Gross Profit:
Domestic contract compression $51,896 $47,678 $44,708
International contract
compression 22,393 21,772 17,833
Fabrication 2,864 3,041 4,026
Aftermarket services 8,829 6,661 7,181
Total $85,982 $79,152 $73,748
Selling, General and Administrative $20,438 $20,072 $18,215
% of Revenue 10% 10% 10%
EBITDA, as adjusted $65,192 $56,897 $55,116
% of Revenue 31% 29% 30%
Capital Expenditures $41,886 $38,283 $20,345
Proceeds from Sale of PP&E 4,400 6,003 1,910
Net Capital Expenditures $37,486 $32,280 $18,435
Profit Margin:
Domestic contract compression 65% 62% 63%
International contract
compression 74% 76% 78%
Fabrication 5% 6% 7%
Aftermarket services 21% 17% 21%
Total 41% 41% 40%
Reconciliation of GAAP to Non-GAAP
Financial Information:
Net income (loss) $18,136 $(4,490) $11,785
Income tax expense (benefit) 9,800 (3,570) 6,921
Depreciation and amortization 25,633 24,390 22,673
Interest expense, net 12,460 14,396 16,817
Foreign currency (gain) loss (837) 103 (358)
Debt extinguishment costs - 26,068 475
Gain on termination of interest
rate swaps - - (3,197)
EBITDA, as adjusted(1) $65,192 $56,897 $55,116
June 30, March 31, June 30,
2005 2005 2004
Debt and Capital Lease Obligations $849,463 $858,096 $792,665
Stockholders' Equity $876,705 $861,672 $813,508
Total Debt to Capitalization 49.2% 49.9% 49.4%
(1) 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
June 30, March 31, June 30,
2005 2005 2004
Total Available Horsepower (at period
end):
Domestic contract compression 1,921 1,925 1,899
International contract
compression 566 544 424
Total 2,487 2,469 2,323
Average Contracted Horsepower:
Domestic contract compression 1,740 1,717 1,626
International contract
compression 513 484 388
Total 2,253 2,201 2,014
Horsepower Utilization:
Spot (at period end) 91.4% 90.4% 87.6%
Average 90.7% 90.0% 86.7%
Fabrication Backlog (in millions) $73 $69 $81
SOURCE Universal Compression Holdings, Inc.
07/27/2005
CONTACT:
9256 07/27/2005 08:00 EDT http://www.prnewswire.com