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EVANSVILLE, IN May 7, 2008 – United Components, Inc. (“UCI”) today announced results for the quarter ended March 31, 2008. Revenue of $229.3 million decreased $9.6 million over the year-ago quarter. Excluding the non-recurring effects of obtaining new customer business in both years, revenue decreased by approximately 6% from the year-ago quarter. On this basis, the company reported a small revenue increase in the retail channel and declines in the traditional, OEM, OES and heavy duty channels.
Net income for the quarter was $6.8 million, including $1.8 million in special charges, net of tax, related to the establishment of new facilities in China, integration of water pump operations and costs of obtaining new business. Excluding these charges, adjusted net income from continuing operations would have been $8.6 million. Net income for the first quarter of 2007 was $4.5 million, including $3.3 million of special charges, net of tax, consisting of costs of obtaining new business and costs related to the integration of water pump operations, partially offset by a gain from the sale of a facility. Excluding these net special charges, adjusted net income would have been $7.8 million.
Earnings before interest, taxes, depreciation and amortization, or EBITDA, as adjusted consistent with the company’s historical presentations, was $32.6 million for the first quarter, compared with $34.2 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.
“After a strong finish to 2007, our first quarter 2008 results were adversely affected by the tough marketplace we’ve been facing for several quarters,” said Bruce Zorich, Chief Executive Officer of UCI. “With energy prices breaking through record levels, raw material costs continuing to increase and the overall economy in difficulty, we saw a decrease in year-over-year revenue and EBITDA.”
“Given the economic circumstances however, we are pleased that our initiatives in North American facilities consolidation, international production, procurement and overall operational excellence are enabling us to continue to post good operating results in this environment,” continued Zorich. “In addition, despite the current weak marketplace, we remain excited about our new business development efforts, both in North America and internationally.”
As of March 31, the company’s debt stood at $420.7 million, after a debt repayment during the quarter of $10 million of its senior credit facility borrowings, primarily with cash flow from operations. The company ended the quarter with $22.6 million in cash.
Conference Call
The company will host a conference call to discuss its results and performance on Thursday, May 8, at 11:00 a.m. Eastern Time. 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 May 8, 2008, 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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