|
Highlights:
- Positive momentum from 2006 leads to strong start for 2007
- Strategic initiatives continue to provide significant operational improvements
- Repayment of $40 million of debt during the quarter, using primarily cash flow from operations
EVANSVILLE, IN May 15, 2007 – United Components, Inc. (“UCI”) today announced results for the quarter ended March 31, 2007. Revenue of $238.8 million increased $24.3 million over the year-ago quarter, including $24.3 million in sales by water pump manufacturer ASC Industries, which was acquired by UCI during the second quarter of 2006. On a comparable basis (excluding ASC sales in 2007 and the non-recurring effects of obtaining new customer business in both years), revenue increased by approximately 5% from the year-ago quarter. On this basis, the company reported revenue increases in the retail and heavy duty channels and declines in the OEM, traditional and original equipment service channels.
Net income from continuing operations for the quarter was $4.5 million, compared to $3.4 for the first quarter of 2006. Both periods included special items. The 2007 quarter included $0.6 million in special income, net of tax, consisting of a gain from the sale of a facility, partially offset by costs related to the acquisition of ASC. The 2006 quarter included $0.9 million in special charges, net of tax, relating to costs of closing facilities and consolidating operations. Excluding these special items, adjusted net income from continuing operations would have been $3.9 million and $4.3 million for the first quarter of 2007 and the first quarter of 2006, respectively.
Earnings before interest, taxes, depreciation and amortization, or EBITDA, for UCI’s continuing operations, as adjusted consistent with the company’s historical presentations, was $34.2 million for the first quarter, compared with $25.5 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.
“We are pleased to report that our positive momentum at the end of 2006 carried us to a strong start for 2007,” said Bruce Zorich, Chief Executive Officer of UCI. “With the overall marketplace continuing to be difficult, and particularly with energy prices once again reaching near-record levels, we performed extremely well, achieving growth in revenue and EBITDA and continuing to generate significant cash flow.”
“Our new business development efforts, both in North America and internationally, allowed us to overcome these market challenges and see first quarter revenue improvement,” continued Zorich. “In addition, our initiatives in facilities consolidation, procurement and overall operational excellence are meeting or exceeding our expectations.”
As of March 31, the company’s debt stood at $461.5 million, after repayments during the quarter of $40 million of its senior credit facility borrowings, primarily with cash flow from operations. The company ended the quarter with $12.8 million in cash.
Conference Call
The company will host a conference call to discuss its results and performance on Wednesday, May 16, 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 (641) 297-7667
A replay of the call will be available here from May 17, 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:
Dave Barron, Chief Financial Officer (812) 867-4727
|
