EX-99.1 3 h93973ex99-1.txt PRESS RELEASE DATED JANUARY 28, 2002 EXHIBIT 99.1 UNIVERSAL COMPRESSION REPORTS FISCAL 2002 THIRD QUARTER RESULTS EBITDA Up 154 Percent Over Last Year HOUSTON, JANUARY 28, 2002 -- UNIVERSAL COMPRESSION HOLDINGS, INC. (NYSE: UCO), a leading provider of natural gas compression services, today reported net income for its fiscal 2002 third quarter ended December 31, 2001 of $13.8 million, or $0.45 per diluted share, on revenues of $177.4 million. In the third quarter of fiscal 2001, the Company reported net income of $3.1 million, or $0.21 per diluted share, on revenue of $60.0 million. EBITDA increased 154 percent to $55.1 million from $21.7 million in the prior year period. EBITDA is defined as net income plus income taxes, interest expense, leasing expense, management fees, depreciation and amortization excluding non-recurring items and extraordinary gains or losses. "Universal Compression continues to record strong financial results despite the current slowdown in overall economic activity," said Stephen A. Snider, Universal's President and Chief Executive Officer. "Going forward, we will continue our efforts to maximize operating results by seizing market opportunities while maintaining a strong financial position." SEGMENT INFORMATION The contract compression segment provided revenue of $85.9 million, an increase of 138 percent from the prior year period. The Company's contract compression compressor fleet has increased to approximately 2.2 million horsepower at December 31, 2001 from 841,000 horsepower at December 31, 2000, and the fleet average horsepower utilization was 89 percent, unchanged from the year ago period. International contract compression revenue for the quarter was $16.5 million, an increase of 273 percent from the prior year period. At December 31, 2001, the Company's international fleet totaled approximately 340,000 horsepower. "The growth in our compressor fleet, through consolidating acquisitions and providing incremental compression units to meet customer demand, has driven the impressive increase in the contract compression segment's financial contribution. However, the financial situation in Argentina has the potential to negatively impact the level of future results, although this situation had a minimal impact in the December 2001 period," said Snider. The fabrication segment recorded revenue of $55.3 million, an increase of 219 percent from the prior year period. Fabrication backlog was $101 million at December 31, 2001 and September 30, 2001, up from $30.5 million at December 31, 2000. The parts sales and service segment recorded revenue of $36.2 million compared to $6.5 million in the prior year period. "The increase in financial contribution from the fabrication and parts sales and service segments reflects our success in providing a wider range of compression products and services," said Snider. -7- CONFERENCE CALL Universal will host a conference call on Tuesday, January 29, 2002 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 over the Internet to provide interested persons the opportunity to listen to it live. The call will also be archived for one week 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 "Company Overview" in the "Company Information" section) or http://www.videonewswire.com/event.asp?id=2893 at least 15 minutes prior to the start of the call. A replay of the call will remain available at the Web sites www.universalcompression.com and http://www.prnewswire.com through February 5, 2002. 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 integration of acquisitions, the demand for Universal's products and services and worldwide economic 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 December 31, September 30, December 31, 2001 2001 2000 Revenue: Contract compression $85,942 $85,190 $36,172 Fabrication 55,258 56,831 17,329 Parts sales and service 36,179 32,287 6,471 Total revenue 177,379 174,308 59,972
8 Costs and expenses: Cost of sales - contract compression 29,567 29,749 12,259 Cost of sales - fabrication 48,703 50,780 15,624 Cost of sales - parts sales and service 27,854 25,650 5,708 Depreciation and amortization 12,233 11,712 7,726 Selling, general and administrative 16,134 15,813 4,747 Operating lease 14,788 12,973 3,539 Interest expense 5,357 6,573 5,372 Other 194 189 (42) Total costs and expenses 154,830 153,439 54,933 Income before income taxes 22,549 20,869 5,039 Income taxes 8,798 8,076 1,909 Net income $13,751 $12,793 $3,130 Weighted average common and common equivalent shares outstanding: Basic 30,567 30,396 14,666 Diluted 30,844 30,606 15,052 Earnings per share: Basic $0.45 $0.42 $0.21 Diluted $0.45 $0.42 $0.21
UNIVERSAL COMPRESSION HOLDINGS, INC. UNAUDITED SUPPLEMENTAL INFORMATION (In thousands)
Three Months Ended December 31, September 30, December 31, 2001 2001 2000 Revenue: Domestic contract compression $69,423 $68,871 $31,747 International contract compression 16,519 16,319 4,425 Fabrication 55,258 56,831 17,329 Parts sales and service 36,179 32,287 6,471 Total $177,379 $174,308 $59,972 Gross Profit: Domestic contract compression $44,465 $43,882 $20,526 International contract compression 11,910 11,559 3,387 Fabrication 6,555 6,051 1,705
9 Parts sales and service 8,325 6,637 763 Other (24) (189) 42 Total $71,231 $67,940 $26,423 Selling, General and Administrative $16,134 $15,813 $4,747 % of Revenue 9% 9% 8% EBITDA, as adjusted $55,097 $52,127 $21,676 % of Revenue 31% 30% 36% Profit Margin: Domestic contract compression 64% 64% 65% International contract compression 72% 71% 77% Fabrication 12% 11% 10% Parts sales and service 23% 21% 12% Total 40% 39% 44%
EBITDA, as adjusted, is defined as net income plus income taxes, interest expense, leasing expense, management fees, depreciation and amortization, excluding non-recurring items and extraordinary gains and losses.
December 31, March 31, 2001 2001 Debt $222,828 $215,107 Operating Leases $708,500 $527,500 Shareholders' Equity $745,712 $652,574
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