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EVANSVILLE, IN May 3, 2006 – United Components, Inc. (“UCI”) today announced results for the quarter ended March 31, 2006. Revenue increased to $263.7 million, 7.4% over the year- ago quarter, with increases in the retail, heavy duty and original equipment sales channels and declines in the traditional and original equipment service channels. Net income for the quarter
was $4.8 million, up from $2.7 million for the first quarter of 2005.
Earnings before interest, taxes, depreciation and amortization, or EBITDA, as adjusted pursuant to the company’s credit agreement for its senior credit facilities, was $29.5 million for the first quarter, an increase of 19.9% over EBITDA of $24.6 million for the year-ago quarter.
“We are extremely pleased with our strong start to 2006,” said Bruce Zorich, Chief Executive Officer of UCI. “We saw some very tangible results this quarter from the investment we’ve made throughout 2005, and continue to make, in revenue and profitability initiatives.”
“Our new business development efforts were reflected in our first quarter revenue improvement, particularly in the retail channel,” continued Zorich. “And our operational improvements helped to offset the continuing increases in raw material and energy costs.”
UCI continues to work toward completing its previously announced acquisition of ASC Industries, Inc. The regulatory clearance necessary for the transaction has been obtained, and the company currently anticipates completing the acquisition by the end of May 2006. UCI plans to fund the acquisition through an amendment to its existing senior credit facilities, including additional borrowings of approximately $115 million.
UCI generated $18.9 million of cash in the quarter, ending the quarter with $45.1 million in cash. As of March 31, 2006, the company’s debt stood at $443 million, down from $581 million in June 2003 when the acquisition occurred.
Conference Call
The company will host a conference call to discuss its results and performance on Thursday, May 4, at 11:00 a.m. Eastern Daylight Time. Interested parties are invited to listen to the call by telephone. Domestic callers can dial (800) 637-1381. International callers can dial (641) 297-7667.
A replay of the call will be available here from May 5, 2006, 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 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:
Charlie Dickson, Chief Financial Officer (812) 867-4726
Dave Barron, (812) 867-4727
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