UNIFAB International, Inc. Reports Fourth Quarter and Fiscal Year Ended Results
May 26, 2000 05:40 PM Eastern Time
NEW IBERIA, La.--(BUSINESS WIRE)--May 26, 2000--UNIFAB International, Inc. UFAB today reported net loss of $2.1 million ($0.31 per share, basic and diluted) on revenue of $73.1 million for the fiscal year ended March 31, 2000 compared to 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. Net loss for the fourth quarter was $1.9 million ($0.28 per share, basic and diluted) on revenue of $17.3 million compared to net loss of $(710,000) ($0.12 per share, basic and diluted) on revenue of $17.4 for the fourth quarter of fiscal year ended March 31, 1999. The Company reported backlog of approximately $19.2 million at March 31, 2000.
"During the March quarter our operating margins were affected by fewer contract awards and by continued competition for those projects that were awarded," said Dailey Berard, UNIFAB International, Inc. President, CEO and Chairman of the Board. "This protracted delay in awarding construction projects, particularly in the international market, has effected profits beyond the time we expected activity to increase. Although the revenue level in the quarter was approximately the same as in the March quarter last year, and we were able to reduce administrative costs relative to last year, lower margins, particularly in platform fabrication, could not be overcome.
"However, the future is exciting. With worldwide demand for oil breaking 77 million barrels per day and gas storage levels shrinking to critical lows, the demand for oil and gas will continue to grow. UNIFAB is positioned to take full advantage in that market by leveraging our core capabilities of platform, process equipment and drilling rig design and fabrication. During the industry downturn, the Company has continued to increase capabilities through acquisition and investment in new and automated facilities. The development of our deep-water facility at Lake Charles, which will be fully operational this quarter, will be the Company's cornerstone in the future, capable of delivering products and services to the industry without regard to restrictions from water depth. With oil prices in the upper $20 to lower $30 range, with natural gas prices over $4 per MCF, with Exploration and Production budgets up and increasing, we feel all of this bodes well for fiscal 2001 and beyond. During the last quarter we have seen compelling evidence that the industry has seen the bottom and is in the beginning of what appears to be the most dramatic move to the upside in oil and gas activity in many years. Inquiry and bid levels have dramatically increased in areas we have targeted: buoyancy cans and other specialty fabricated components for use in deep water production mainly in the Gulf of Mexico, drilling rig refurbishment and upgrades, Caspian Sea newbuild drilling rigs and upgrades (including proprietary designs) and introduction of FPSO's and ancillary topside equipment modules to Gulf Coast fabrication yards. Our focus remains to aggressively market our Total Project Capabilities to the industry, and to enhance those capabilities through investment and acquisition."
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.
UNIFAB
Condensed Consolidated Statements of Income
Amounts in thousands, except per share data
Three months ended Year ended
March 31 March 31
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2000 1999 2000 1999
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Revenue $ 17,328 $ 17,388 $ 73,145 $ 103,866
Cost of Revenue 17,477 16,440 66,419 85,311
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Gross Profit (Loss) (149) 948 6,726 18,555
Selling, General and
Administrative expense 2,052 2,124 8,193 9,058
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Income (loss) from operations (2,201) (1,176) (1,467) 9,497
Other income (expense):
Other income (expense) 37 27 35 (303)
Interest expense (538) (238) (1,446) (893)
Interest income 56 144 119 306
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Income (loss) before income
taxes (2,646) (1,243) (2,759) 8,607
Income tax (benefit)
provision (715) (533) (685) 2,264
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Net income (loss) (1,931) (710) (2,074) 6,343
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Basic and diluted earnings
per share $ (0.28) $ (0.12) $ (0.31) $ 1.06
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Basic and diluted earnings
per share weighted average
shares 6,802 6,004 6,723 5,972
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Depreciation and
amortization included -------------------- --------------------
in expense above $ 669 $ 566 $ 2,684 $ 2,142
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CONTACT: UNIFAB International Inc., New Iberia Dailey J. Berard, 318/367-8291 Pete Roman, 318/373-5506
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