HOUSTON, May 9 /PRNewswire-FirstCall/ -- Universal Compression Holdings,
Inc. (NYSE: UCO) today reported net income of $20.9 million, or $0.68 per
diluted share, in the three months ended March 31, 2006 compared to $19.6
million, or $0.60 per diluted share, in the three months ended December 31,
2005 and a net loss of $4.5 million, or $0.14 per diluted share, in the prior
year period. The net loss for the three months ended March 31, 2005 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, net income for the three
months ended March 31, 2005 was $14.8 million, or $0.45 per diluted share.
Revenue was $229.1 million in the three months ended March 31, 2006
compared to $224.8 million in the three months ended December 31, 2005 and
$193.6 million in the prior year period. EBITDA, as adjusted (as defined
below), was $76.0 million in the three months ended March 31, 2006 compared to
$74.5 million in the three months ended December 31, 2005 and $56.9 million in
the comparable period of the prior year.
Stephen A. Snider, Universal's Chairman, President and Chief Executive
Officer, said, "We are pleased with our financial performance in the first
quarter of 2006, which included a 51% increase in earnings per share as
compared to the prior year period results, excluding debt extinguishment costs
and asset impairment expense. Revenue, EBITDA, as adjusted, and earnings per
share were again at record levels as market demand remains strong across all
of our business segments. Our outlook for the foreseeable future remains
positive, driven by favorable current activity levels as well as customer
commitments for compression equipment and services well into next year in both
the domestic and international markets."
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 June 30, 2006, we expect revenue of $215
million to $225 million and earnings per diluted share of $0.65 to $0.69. For
the twelve months ending December 31, 2006, we now expect revenue of $950
million to $970 million and earnings per diluted share of $2.80 to $2.95.
Previously reported guidance was revenue of $910 million to $935 million and
earnings per diluted share of $2.65 to $2.80. We continue to expect that
capital expenditures, net of sale proceeds, will be $210 million to $240
million in calendar year 2006.
Conference Call
We will host a conference call today, May 9, 2006, at 10:00 a.m. Central
Time, 11:00 a.m. 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
http://www.universalcompression.com.
EBITDA, as adjusted, is defined as net income plus income taxes, interest
expense (including debt extinguishment costs and 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; our ability to timely, properly and
cost-effectively implement our enterprise resource planning system; employment
workforce factors, including our ability to hire, train and retain key
employees; 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; and changes in economic conditions, laws
or regulatory conditions in the U.S. and other countries in which we operate.
These forward-looking statements are also affected by the risk factors,
forward-looking statements and challenges and uncertainties described in
Universal's Transition Report on Form 10-K for the nine months ended December
31, 2005 and those set forth from time to time in Universal's filings with the
Securities and Exchange Commission, which are available through our website
http://www.universalcompression.com. 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
March 31, December 31, March 31,
2006 2005 2005
Revenue:
Domestic contract compression $94,045 $86,778 $76,918
International contract compression 33,293 33,455 28,739
Fabrication 56,309 59,681 48,037
Aftermarket services 45,421 44,921 39,942
Total revenue 229,068 224,835 193,636
Costs and expenses:
Domestic contract compression -
direct costs 32,914 30,533 29,240
International contract
compression - direct costs 8,397 7,762 6,967
Fabrication - direct costs 50,105 51,778 44,996
Aftermarket services - direct costs 35,807 36,050 33,281
Depreciation and amortization 29,799 27,827 24,390
Selling, general and administrative 26,581 23,819 20,072
Interest expense, net 14,057 14,727 14,396
Debt extinguishment costs - - 26,068
Asset impairment expense - - 3,080
Foreign currency (gain) loss (609) 755 103
Other (income) expense (733) 388 (897)
Total costs and expenses 196,318 193,639 201,696
Income (loss) before income taxes 32,750 31,196 (8,060)
Income tax expense (benefit) 11,875 11,642 (3,570)
Net income (loss) $20,875 $19,554 $(4,490)
Weighted average common and common
equivalent shares outstanding:
Basic 29,629 31,616 31,580
Diluted 30,700 32,522 31,580
Earnings (loss) per share:
Basic $0.70 $0.62 $(0.14)
Diluted $0.68 $0.60 $(0.14)
UNIVERSAL COMPRESSION HOLDINGS, INC.
UNAUDITED SUPPLEMENTAL INFORMATION
(Dollars in thousands)
Three Months Ended
March 31, December 31, March 31,
2006 2005 2005
Revenue:
Domestic contract compression $94,045 $86,778 $76,918
International contract compression 33,293 33,455 28,739
Fabrication 56,309 59,681 48,037
Aftermarket services 45,421 44,921 39,942
Total $229,068 $224,835 $193,636
Gross Profit:
Domestic contract compression $61,131 $56,245 $47,678
International contract compression 24,896 25,693 21,772
Fabrication 6,204 7,903 3,041
Aftermarket services 9,614 8,871 6,661
Total $101,845 $98,712 $79,152
Selling, General and Administrative $26,581 $23,819 $20,072
% of Revenue 12% 11% 10%
EBITDA, as adjusted $75,997 $74,505 $56,897
% of Revenue 33% 33% 29%
Capital Expenditures $38,732 $37,557 $38,283
Proceeds from Sale of PP&E 1,685 3,532 6,003
Net Capital Expenditures $37,047 $34,025 $32,280
Gross Margin:
Domestic contract compression 65% 65% 62%
International contract compression 75% 77% 76%
Fabrication 11% 13% 6%
Aftermarket services 21% 20% 17%
Total 44% 44% 41%
Reconciliation of GAAP to Non-GAAP
Financial Information:
Net income (loss) $20,875 $19,554 $(4,490)
Income tax expense (benefit) 11,875 11,642 (3,570)
Depreciation and amortization 29,799 27,827 24,390
Interest expense, net 14,057 14,727 14,396
Foreign currency (gain) loss (609) 755 103
Debt extinguishment costs - - 26,068
EBITDA, as adjusted (1) $75,997 $74,505 $56,897
March 31, December 31, March 31,
2006 2005 2005
Debt and Capital Lease Obligations $898,314 $923,341 $858,096
Stockholders' Equity $861,278 $831,312 $861,672
Total Debt to Capitalization 51.1% 52.6% 49.9%
(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
March 31, December 31, March 31,
2006 2005 2005
Total Available Horsepower (at period
end):
Domestic contract compression 1,968 1,965 1,925
International contract compression 591 584 544
Total 2,559 2,549 2,469
Average Contracted Horsepower:
Domestic contract compression 1,803 1,787 1,717
International contract compression 548 538 484
Total 2,351 2,325 2,201
Horsepower Utilization:
Spot (at period end) 92.2% 92.3% 90.4%
Average 92.1% 91.7% 90.0%
Fabrication Backlog (in millions) $228 $145 $69
SOURCE Universal Compression Holdings, Inc.
05/09/2006
CONTACT: David Oatman, Vice President, Investor Relations,
+1-713-335-7460, of Universal Compression Holdings, Inc.
2074 05/09/2006 08:00 EDT http://www.prnewswire.com