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 January.

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.

MAKE YOUR OPINION COUNT - Click Here

http://tbutton.prnewswire.com/prn/11690X99128046
SOURCE Universal Compression Holdings, Inc.
Web site: http: //www.universalcompression.com
Photo: NewsCom: http: //www.newscom.com/cgi-bin/prnh/20011008/UCOLOGO AP Archive: http://photoarchive.ap.org PRN Photo Desk, +1-888-776-6555 or +1-212-782-2840
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