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Highlights:
- Continued strong operating performance results in year-over-year EBITDA improvement for every quarter in 2007
- China manufacturing footprint expansion on schedule
EVANSVILLE, IN November 8, 2007 – United Components, Inc. (“UCI”), a leading manufacturer of vehicle replacement parts, today announced results for the third quarter ended September 30, 2007. UCI reported revenue of $230.7 million for the quarter, compared to $238.3 million for the year-ago quarter. The company reported revenue increases in the original equipment service channel, and declines in the retail, OEM, traditional and heavy duty channels.
Net income from continuing operations for the quarter was $8.4 million, including $1.3 million, net of tax, in special charges, primarily costs related to the integration of our water pump operations and establishing new facilities in China. Excluding these charges, adjusted net income from continuing operations would have been $9.7 million for the quarter. Adjusted net income for the third quarter of 2006 was $6.8 million, excluding $4.7 million in special charges, net of tax.
Earnings before interest, taxes, depreciation and amortization, or EBITDA, for UCI’s continuing operations, as adjusted consistent with the company’s historical presentations, was $36.0 million for the third quarter, compared with $34.0 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 strong operating performance led us to another quarter of solid results,” said Bruce Zorich, Chief Executive Officer of UCI. “Even as we experienced revenue declines in several market channels this quarter, we achieved year-over-year improvement in adjusted EBITDA for the third straight quarter. Our strong operations were highlighted by continuing cost savings, including those generated by last quarter’s completion of the integration of our historical water pump operations with ASC.”
“In addition, we made significant progress during the quarter in establishing two new manufacturing facilities in China,” continued Zorich. “We’re on track to have them in operation by early 2008, continuing the expansion of our global manufacturing operations.”
As of September 30, the company’s debt stood at $463.6 million. The company ended the quarter with $15.4 million in cash.
Conference Call
UCI will host a conference call to discuss its results and performance on Thursday, November 8, at 2:00 p.m. Eastern Time (ET). 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 November 9, 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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