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Highlights:
- Continued strong operating performance results in year-over-year EBITDA improvement for every quarter in 2007
- China fuel pump manufacturing underway, air filter facility set to open
- Repayment of $25 million of debt in the quarter, $65 million for the year
EVANSVILLE, IN March 26, 2007 – United Components, Inc. (“UCI”) today announced results for the fourth quarter ended December 31, 2007. Revenue of $240.6 million increased $17.9 million, or 8.1%, compared to the year-ago quarter. The company reported revenue increases in the retail, traditional, heavy duty and OEM channels, and a decline in the original equipment service channel.
Net income from continuing operations for the quarter was $12.5 million, including $2.1 million, net of tax, in special charges, related to the integration of our water pump operations, facilities consolidation expenses, costs of establishing new facilities in China, costs of obtaining new business and costs to resolve disputed non-trade receivables. Excluding these charges, adjusted net income from continuing operations would have been $14.6 million for the quarter. Adjusted net income from continuing operations for the fourth quarter of 2006 was $8.5 million, excluding $6.4 million in special charges net of tax, primarily relating to the acquisition of ASC Industries, integration of our water pump operations, facilities consolidation expenses, and costs of obtaining new business and long-term sales commitments.
Earnings before interest, taxes, depreciation and amortization, or EBITDA, for UCI’s continuing operations, as adjusted consistent with the company’s historical presentations, was $39.3 million for the fourth quarter, compared with $30.7 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.
“2007 was a very successful year for United Components, with year-over-year improvement in adjusted EBITDA for each quarter,” said Bruce Zorich, Chief Executive Officer of UCI. “We’re extremely pleased with that, in a slowing economy with increasing energy and raw materials costs, healthy top-line growth and operational excellence led to strong financial results.”
“As we head into 2008 with good momentum in our core operations, we are making great strides with our international initiatives,” continued Zorich. “The first products manufactured at our new Chinese fuel pump facility rolled off the line earlier in this quarter, and our air filter facility is scheduled to begin operations in the second quarter. These successes represent just the first phase of the expansion of our global manufacturing base.”
As of December 31, the company’s debt stood as $438.4 million, after a debt repayment of $25.0 million of its senior credit facility borrowings in the fourth quarter. The company ended the quarter with $41.4 million in cash.
Conference Call
UCI will host a conference call to discuss its results and performance on Thursday, March 27, 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 (435) 871-6124.
A replay of the call will be available here from March 28, 2007, 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 2006 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.
For More Information, Contact:
Dan Johnston, Chief Financial Officer (812) 867-4726
Dave Barron (812) 867-4727
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