UNIFAB International Reports Fourth Quarter Results
NEW IBERIA, La.--(BUSINESS WIRE)--June 24, 1999--UNIFAB
International, Inc. (NASDAQ:UFAB) today reported net income of $6.3
million ($1.06 per share, basic and diluted) on revenue of $103.9
million for the fiscal year ended March 31, 1999 compared to net
income of $7.2 million ($1.39 per share, basic and diluted) on revenue
of $109.2 million for the fiscal year ended March 31, 1998. Operating
results for the year ended March 31, 1999 were reduced by ($0.10) per
share due to non-recurring acquisition expenses of $442,000 and a one
time charge of $525,000 related to the cumulative deferred income
taxes resulting from the acquisition of Allen Tank, Inc. The Company
reported backlog of approximately $27.1 million at March 31, 1999.
Net loss for the fourth quarter was ($710,000) (($0.12) per
share, basic and diluted) on revenue of $17.4 million compared to net
income of $2.1 million ($0.36 per share, basic and diluted) on revenue
of $29.4 for the fourth quarter of fiscal year ended March 31, 1998.
Operating results for the quarter ended March 31, 1999 were reduced by
losses of ($750,000) pretax, or ($0.08) per share, at the
Lake Charles facility, which is currently undergoing development. "It
is possible we could have made some severe cuts in our work force in
the March quarter to size it to the current level of business, but
with oil prices stabilizing in the $18-$19 per barrel range and gas
prices in the $2.30-$2.50 per Mcf range, we believe this would have
severely impacted out ability to remain viable for the turnaround we
now anticipate," said Dailey Berard, UNIFAB International, Inc.'s
President, CEO and Chairman of the Board.
Pro forma net income for the year ended March 31, 1999 was $5.3
million ($0.89 per share) compared to pro forma net income of $6.5
million ($1.26 per share) for the year ended March 31, 1998. Pro forma
net income consists of the Company's historical net income, adjusted
to reflect income taxes as if Allen Tank, Inc. had operated as a C
Corporation for all periods. This calculation excludes the one time
charge of $525,000 related to the cumulative deferred income taxes
resulting from the conversion to a C Corporation on July 24, 1998.
"This has been a year of tremendous growth for UNIFAB," noted Mr.
Berard. "We significantly increased the size and capabilities of the
Company with the acquisition of Allen Process Systems, we are
developing our deep water facility at Lake Charles and, most recently,
we acquired Oil Barges, Inc. which gave us design and fabrication
capabilities in the drilling rig industry. While overall bidding
activity has improved from the level experienced last summer, many
awards have been delayed, in particular in the international market
where we anticipated higher award activity. Pricing is fiercely
competitive and profit margins on new work are well below levels in
fiscal 1998. While our operating results for the year are in line with
our expectations, we are disappointed with the operating results of
the March quarter. The decrease in revenue from prior quarters and
when compared to the March quarter last year reflects the relatively
lower level of activity in the industry. In particular, the
anticipated completion date for the development of our deep-water
facility in Lake Charles has been delayed well beyond our original
plans, to late November-early December. That delay, coupled with the
drop off in utilization and demand for repair work on drilling rigs,
resulted in our being unable to meet expected operating goals for that
facility this year. Recent contract awards, in particular those at
Allen Process Systems, are in the design phase and did not have much
of an impact in the current fiscal year. As a result, productive man
hours in the March quarter were lower than expected. We do not expect
to see a significant increase in activity in the near-term, but
anticipate it as we near the end of the calendar year.
"We continue to believe that our deep water facility in Lake
Charles will be the Company's cornerstone in the future. The addition
of Oil Barges, Inc. in April, 1999 brought experience and capabilities
in the design, repair and refurbishment of drilling rigs that is vital
to the development of that facility. Our focus remains to aggressively
market our Total Project Capabilities to the industry. We continue
position the Company for increased participation in the market through
acquisition, as well as through facilities enhancements."
UNIFAB International, Inc. is an industry leader in the custom
fabrication of topsides facilities, equipment modules and other
structures used in the development and production of oil and gas
reserves. In addition, the Company designs and manufactures
specialized process systems, refurbishes and retrofits existing
jackets and decks, provides design, repair, refurbishment and
conversion services for oil and gas drilling rigs and performs
offshore piping hook-up and platform maintenance services. Dailey
Berard serves as a commissioner on a number of committees and task
forces that are working to improve training and education of the
workforce in Louisiana.
Statements made in this news release regarding UNIFAB's
expectations as to future operations of UNIFAB and other statements
included herein that are not statements of historical fact are
forward-looking statements that depend upon the following factors,
among others: continued demand for the services provided by UNIFAB,
availability of skilled employees, and UNIFAB's ability to integrate
and manage acquired businesses. Should any of these factors not
continue as anticipated, actual results and plans could differ
materially from those expressed in the forward-looking statements.
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UNIFAB
Condensed Consolidated Statements of Income
Amounts in thousands, except per share data
Three months ended Year ended
March 31 March 31
1999 1998 1999 1998
Revenue $ 17,388 $ 29,393 $ 103,866 $ 109,170
Cost of Revenue 16,440 23,975 85,311 91,778
Gross Profit 948 5,418 18,555 17,392
Selling, General and
Administrative expense 2,124 2,317 9,058 6,807
Income (loss)
from operations (1,176) 3,101 9,497 10,585
Other income (expense):
Other income (expense) 27 (91) (302) 67
Interest expense (238) (232) (893) (1,059)
Interest income 144 208 306 522
Income (loss) before
income taxes (1,243) 2,986 8,608 10,115
Income tax (benefit)
provision (533) 865 2,264 2,896
Net income (loss) (710) 2,121 6,344 7,219
Basic and diluted
earnings per share $ (0.12) $ 0.36 $ 1.06 $ 1.39
Basic and diluted
earnings per share
weighted average
shares 6,004 5,938 5,972 5,192
Pro forma data:
Income (loss) before
income taxes, as
reported above, $ (1,243) $ 2,986 $ 8,608 $ 10,115
Current tax (benefit)
provision (533) 865 1,739 2,896
Pro forma provision for
income taxes related
to S Corporation
operations -- 700 1,554 699
Pro forma net income $ (710) $ 1,421 $ 5,315 $ 6,520
Pro forma basic and
diluted earnings per
share $ (0.12) $ 24.00 $ 0.89 $ 1.26
Depreciation and
amortization included
in expense above $ 566 $ 486 $ 2,081 $ 1,265
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CONTACT:
UNIFAB International Inc., New Iberia
Dailey J. Berard, 318/367-8291
or
Pete Roman, 318/373-5506 |
