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EVANSVILLE, IN August 17, 2009 – United Components, Inc. ("UCI") today announced results for the quarter ended June 30, 2009. Revenue of $217.4 million decreased $11.8 million compared to the year-ago-quarter. UCI recorded a 5.2% decreased in sales from the second quarter of 2008, with increases in the retail and traditional channels and declines in the OEM, original equipment service and heavy duty channels.
Net income attributable to UCI for the quarter was $7.5 million, compared to $4.0 million for the second quarter of 2008. Both periods included special items. The 2009 quarter included $1.4 million in special items, net of tax, consisting of costs related to the consolidation and integration of operations, reductions in force, establishment of new facilities in China, defending class action litigation and obtaining new business, partially offset by the gain on the sale of a building as part of the consolidation of operations. The 2008 quarter included $5.9 million in special charges, net of tax, consisting of a one-time warranty expense, costs of defending class action litigation, establishment of new facilities in China and the costs of obtaining new business. Excluding these charges, adjusted net income attributable to UCI would have been $8.9 million for the second quarter of 2009 and $9.9 million for the second quarter of 2008.
Earnings before interest, taxes, depreciation and amortization, or EBITDA, for UCI's continuing operations, as adjusted consistent with the company's historical presentations, was $31.5 million for the second quarter, compared with $34.1 million for the year-ago quarter. The calculation of adjusted EBITDA is set forth in Schedule A.
"The continuing weakness in the economy resulted in another quarter of slow sales in the OEM, OES and heavy duty channels, which was balanced by the beginning of an improvement in retail and traditional channels," said Bruce Zorich, Chief Executive Officer of UCI. And the key leading indicator, miles driven, has finally had a small uptick in the last couple of months, which should begin to reverse the trend of decreased part replacement and routine maintenance as we move forward."
"Operationally, while EBITDA was down year over year, the aggressive cost cutting initiatives we have undertaken since late last year enabled us to post sequential EBITDA growth over this year's first quarter," continued Zorich. "We believe that we are very well positioned to take advantage of the opportunities that will present themselves as the economy recovers."
As of June 30, the company's debt stood at $424.3 million. The company ended the quarter with $90.6 million in cash.
Conference Call
The company will host a conference call to discuss its results and performance on Tuesday, August 18, 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 (502) 498-8424.
A replay of the call will be available here from August 18, 2009, 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 2008 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.
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