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Highlights:
- Positive momentum in operating performance continues
- Integration of ASC Industries with historical water pump operations now complete
- Plans underway for continued expansion of China manufacturing footprint
EVANSVILLE, IN August 8, 2007 – United Components, Inc. (“UCI”) today announced results for the quarter ended June 30, 2007. Revenue of $259.6 million increased $29.1 million compared to the year-ago quarter. This quarter included $36.2 million in sales by ASC Industries, $12.1 million of which resulted from the sale of inventory in connection with the termination of an inventory consignment program with one of its customers. The 2006 quarter included $10.3 million in ASC revenue beginning on the May 25 date of ASC’s acquisition by UCI. Excluding the ASC sales in both periods, UCI recorded a 1.5% increase in revenue for the quarter, with increases in the retail and heavy duty channels and declines in the OEM, original equipment service and traditional channels.
Net income for the quarter was $10.0 million, compared to a loss of $1.4 million for the second quarter of 2006. Both periods included special items. The 2007 quarter included $3.2 million in special charges, net of tax, consisting of costs related to the integration of our water pump operations and the impairment of a trademark asset. The 2006 quarter included $9.0 million in special charges, net of tax, primarily costs related to the acquisition of ASC and facilities consolidation costs. Excluding these charges, adjusted net income would have been $13.2 million for the second quarter of 2007 and $7.6 million for the second quarter of 2006.
Earnings before interest, taxes, depreciation and amortization, or EBITDA, for UCI’s continuing operations, as adjusted consistent with the company’s historical presentations, was $40.9 million for the second quarter, compared with $31.9 million for the year-ago quarter. The calculation of adjusted EBITDA is set forth in Schedule A.
“We are pleased to report another very successful quarter,” said Bruce Zorich, Chief Executive Officer of UCI. “We saw growth in revenue which, with our continued strong execution, led to a significant increase in EBITDA. An additional operational highlight this quarter was the completion, on schedule, of the integration of our historical water pump manufacturing operations with ASC. We have already benefited from cost savings generated by the integration, and those savings will continue in the quarters ahead.”
“We are also very excited to report that we are in the early execution stages of expanding our manufacturing footprint in China,” continued Zorich. “We are leveraging ASC’s more than 15 years of experience in China manufacturing to open two new facilities, for air filter and fuel pump production, which we plan to have in operation by early 2008. We view this as the next critical step in continuing to expand UCI into an efficient global manufacturer.”
As of June 30, the company’s debt stood at $465.8 million. The company ended the quarter with $4.2 million in cash.
Conference Call
The company will host a conference call to discuss its results and performance on Thursday, August 9, at 2:00 p.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 August 10, 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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