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EVANSVILLE, IN March 25, 2009 – United Components, Inc.("UCI") today announced results for the fourth quarter ended December 31, 2008. Revenue of $203.7 million was down $36.9 million, or 15.3%, compared to the year-ago quarter. The company reported that revenue was down in all channels, most significantly in the OEM and original equipment service (new car dealer) channels.
Earnings before interest, taxes, depreciation and amortization, or EBITDA, for UCI's continuing operations, as adjusted consistent with the company's historical presentations, was $16.9 million for the fourth quarter, compared with $39.3 million for the year-ago quarter. The reconciliation of net income to adjusted EBITDA, a non-GAAP measure of financial performance, is set forth in Schedule A.
Net loss from continuing operations for the quarter was $5.3 million, including $5.3 million, net of tax, in special charges, consisting of costs related to obtaining new business, integration of our water pump operations, trademark impairment, a one-time warranty expense, defending class action litigation, establishing new facilities in China and reduction in force. Excluding these charges, adjusted net income from continuing operations would have been $0 for the quarter. Adjusted net income from continuing operations for the fourth quarter of 2007 was $14.6 million, excluding $2.1 million, net of tax, in special charges, consisting of costs related to the integration of our water pump operations, facilities consolidation expenses, establishing new facilities in China, obtaining new business and resolving disputed non-trade receivables.
"The severe economic downturn continued in the fourth quarter, again impacting both our revenue and our operating performance," said Bruce Zorich, Chief Executive Officer of UCI. "Consumer spending declined significantly which, for our industry, means fewer miles driven and reduced part replacement, as well as delay of routine maintenance."
"In this difficult economy, we have worked aggressively on our cost structure, which has enabled us to effectively compete and serve our customers in this environment," continued Zorich. "We have seen our work pay off in performance improvement through the first two months of 2009 and we have seen signs of a return in consumer demand, particularly in the retail channel. We believe we are well positioned to capitalize on growth opportunities as the economy stabilizes."
As of December 31, 2008, the company's debt stood at $443.6 million. The company ended the quarter with $46.6 million in cash.
Conference Call
UCI will host a conference call to discuss its results and performance on Thursday, March 26, at 11:00 a.m. Eastern Time (ET). Interested parties are invited to listen to the call by telephone. Domestic callers can dial (800) 637-1381. International callers can dial (502) 498-8424.
A replay of the call will be available here from March 26, 2009, for a ninety-day period.
About United Components, Inc
United Components, Inc. is among North America's largest and most diversified companies servicing the vehicle replacement parts market. We supply a broad range of products to the automotive, trucking, marine, mining, construction, agricultural and industrial vehicle markets. Our customer base includes leading aftermarket companies as well as a diverse group of original equipment manufacturers.
Forward Looking Statements
All statements, other than statements of historical facts, included in this press release and the attached report that address activities, events or developments that UCI expects, believes or anticipates will or may occur in the future are forward-looking statements. Forward-looking statements give UCI's current expectations and projections relating to the financial condition, results of operations, plans, objectives, future performance and business of UCI and its subsidiaries. These statements can be identified by the fact that they do not relate strictly to historical or current facts. They are subject to uncertainties and factors relating to UCI's operations and business environment, all of which are difficult to predict and many of which are beyond UCI's control. UCI cautions investors that these uncertainties and factors, including those discussed in Item 1A of UCI's 2007 Annual Report on Form 10-K and in its other SEC filings, could cause UCI's actual results to differ materially from those stated in the forward-looking statements. UCI cautions that investors should not place undue reliance on any of these forward-looking statements. Further, any forward-looking statement speaks only as of the date on which it is made, and except as required by law, UCI undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which it is made or to reflect the occurrence of anticipated or unanticipated events or circumstances.
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