Exterran Holdings, Inc. (ticker: EXH, exchange: New York Stock Exchange (.N))
News Release -
Universal Compression Announces Earnings Guidance and Argentina Update
HOUSTON, April 2 /PRNewswire-FirstCall/ -- Universal Compression Holdings,
Inc. (NYSE: UCO) today announced revised earnings guidance with a larger than
anticipated unfavorable impact from the Argentina economic situation. The
Company expects earnings per diluted share of $0.39 to $0.41 for the three
months ended March 31, 2002 compared to $0.26 for the same period last year,
and $1.61 to $1.63 for the twelve months ended March 31, 2002 compared to
$0.70 excluding special charges in the prior year. The revised fiscal 2002
period guidance includes the negative impact of the Argentina-related matters
of approximately $0.08 to $0.10 on earnings per diluted share.
"The developments in Argentina are expected to negatively impact our
financial results in the fourth fiscal quarter and into the first half of
fiscal year 2003," said Stephen A. Snider, President and Chief Executive
Officer. "The Company's activity levels in Argentina, however, remain healthy
due to its market position and continued strong demand for natural gas in
Argentina. Although timing is uncertain, we are optimistic that we should
achieve a higher level of financial results in this important energy market in
the not too distant future."
In early January 2002, the Argentina government announced that liabilities
owed in U.S. dollars could be paid with Argentine pesos on a one-for-one basis
plus "equitable adjustment" as agreed by the parties. The Company's updated
guidance for the fourth fiscal quarter reflects customer revenue obligations
on a one-for-one basis using the appropriate exchange rates during the quarter
with no impact from an expected "equitable adjustment" for capital and other
costs incurred in dollars. While the Company has not finalized negotiations
with customers, it believes that the eventual settlements will mitigate the
estimated unfavorable financial impact to be recorded in the current quarter.
The value of the peso has declined significantly relative to the dollar since
The Company expects EBITDA, as adjusted, of $52.0 to $53.5 million for the
three months ended March 31, 2002 compared to $34.4 million in the same period
last year, and $206.0 to $207.5 million for the twelve months ended
March 31, 2002 compared to $88.6 million for the same fiscal period last year.
The fiscal 2002 period guidance includes the negative impact of the Argentina-
related matters of approximately $4 to $5 million on EBITDA, as adjusted.
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 or losses. The
Argentina-related matters are primarily reflected in the Company's contract
compression revenues and related expenses.
The Company also expects to record a non-cash adjustment to stockholders'
equity at March 31, 2002 pertaining to translation of the Argentina balance
sheet. The Company's Argentina-based contract compression fleet totals
approximately 172,000 horsepower and has a current spot horsepower utilization
of approximately 98%.
The Company plans to provide guidance regarding expected fiscal year 2003
results during its fourth quarter fiscal 2002 earnings conference call in the
latter half of May 2002. The Company noted its total contract compression
fleet has a current spot horsepower utilization of approximately 85%.
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.
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SOURCE Universal Compression Holdings, Inc.
Web site: http: //www.universalcompression.com
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Company News On-Call: http: //www.prnewswire.com/comp/157369.html
CONTACT: David Oatman, Director, Investor Relations of Universal Compression Holdings, Inc., +1-713-335-7460
CAPTION: UCOLOGO UNIVERSAL COMPRESSION HOLDINGS LOGO 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. (PRNewsFoto)[TK] HOUSTON, TX USA 10/08/2001