Streicher Mobile Fueling, Inc. Reports Results for the First Quarter Ended September 30, 2004
FT. LAUDERDALE, Fla.--Nov. 1, 20045, 2004--STREICHER MOBILE FUELING, INC. , a refueling and fuel management outsourcing solution for vehicle and equipment fleets, today announced results for the first quarter ended September 30, 2004, as follows:
(All amounts in thousands of dollars, except share and volume data)
For the Three Months Ended
--------------------------
(Unaudited)
Increase Increase
Selected Income Statement and -------- --------
Financial Data: 9/30/2004 9/30/2003 (Decrease)(Decrease)
-------------------------------------- --------- -------- --------
Total revenues 28,909 19,417 9,492 49 %
Gross profit 1,800 822 978 119 %
Operating income(1) 677 488 189 39 %
Net income(1) 295 206 89 43 %
EBITDA (1,2,5) 992 824 168 20 %
Basic net income per share 0.04 0.03 0.01 33 %
Diluted net income per share 0.04 0.03 0.01 33 %
Basic Weighted average shares
outstanding 7,331,945 7,248,305 83,640 1 %
Diluted Weighted average
shares outstanding 7,869,780 7,504,502 365,278 5 %
Depreciation and amortization
(3) 315 334 (19) (6)%
Gallons sold in thousands 15,153 13,273 1,880 14 %
Average net margin per gallon
(in cents)(4) 13.7 8.3 5.4 65 %
Selected Balance Sheet Data: 9/30/2004 6/30/2004
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Total assets 22,459 20,018 2,441 12 %
Total liabilities 16,721 14,670 2,051 14 %
Total shareholders' equity 5,738 5,348 390 7 %
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(1) Includes $757,000 gain on extinguishment of debt during the first
quarter ended September 30, 2003
(2) Earnings before interest, taxes, depreciation and amortization
(3) Depreciation and amortization included in cost of sales was
$271,000, and $286,000 for the respective periods noted
(4) Net margin per gallon equals Gross profit plus cost of sales
depreciation and amortization divided by number of gallons sold
(5) Non-GAAP measure EBITDA Reconciliation Table:
3 Months Ended
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9/30/2004 9/30/2003
--------- ---------
Net income 295 206
Add back:
Interest expense 244 193
Non-cash interest expense 138 91
Depreciation and amortization:
Cost of sales 271 285
Sales, general, and administrative 44 49
EBITDA 992 824
Revenues increased $9.5 million, or 49%, in the three months ended September 30, 2004 compared to September 30, 2003. This increase was principally due to a 14.2 % increase in net new business (defined as the incremental change in the fuel volume delivered and sold) and higher fuel prices which averaged 40 cents more per gallon than in the prior year. The Company sold 15.2 million gallons of fuel in the quarter ended September 30, 2004, compared to the 13.3 million gallons in the quarter ended September 30, 2003, a 1.9 million gallon increase of net new business. The net new business resulted from the addition of new accounts as well as expanded market penetration. The higher fuel prices were directly attributable to the volatility of world fuel markets and economic conditions, including higher crude oil prices and greater global fuel demand.
In the quarter ended September 30, 2004, the Company's gross profit, operating income and net income increased over the same period in the prior year by $978,000, $189,000 and $89,000, respectively. These improvements reflect a higher net margin per gallon and the 14.2% increase in net new business as discussed below. The operating profit for the quarter ended September 30, 2003 included a $757,000 gain on extinguishment of debt which did not recur in the current quarter. The Company's earned net income per share of $0.04 in the current quarter, compared to $0.03 in the same period last year, and a loss of $0.01 in the quarter ended June 30, 2004.
Earnings before interest, taxes, depreciation and amortization ("EBITDA") for the quarter ended September 30, 2004 improved by $168,000, or 20%, to $992,000 from $824,000 reported in the same period last year (see Non-GAAP measure EBITDA Reconciliation Table set forth above). This EBITDA increase primarily related to the higher operating profit and volume sold compared to the prior year quarter ended September 30, 2003. The prior year first quarter EBITDA included the $757,000 gain on extinguishment of debt. Excluding this non-recurring item, the Company's EBITDA for the September 2003 quarter would have been $67,000. (EBITDA is a key indicator used by management and the financial community to gauge financial performance of the actual operations of a business without considering the impact of non-cash charges for equipment aging, debt financing expenses, and income taxes. EBITDA isolates actual financial performance of operations independent of the utilization of its capital resources, level of debt financing and the tax impact on the business operations.)
The Company's mobile fueling services business continues to be largely dependent on the number of gallons of fuel sold and the net margin per gallon achieved ("net margin per gallon" is defined as gross profit plus depreciation included in cost of sales divided by gallons sold). For the three months ended September 30, 2004, the Company's net margin per gallon improved to 13.7 cents per gallon compared to 11.9 and 8.3 cents per gallon for the fourth quarter ended June 30, 2004 and the first quarter ended September 30, 2003, respectively. This increase resulted from the continued market acceptance of overall higher margins for the services provided by the Company; the 1.9 million gallons of net new business; and the emergency response mobile fueling and delivery services related to the four hurricanes that affected Florida and the southeastern United States during August and September 2004. Although the recent trend in higher margins for the Company's services is positive, the net margin of 13.7 cents per gallon realized in the current quarter is still lower than the 14.6 cent per gallon net margin achieved in the first quarter of the 2003 fiscal year (and prior to the Company first experiencing the impact of a now defunct competitor's aggressive pricing and price-cutting tactics). There is no assurance that the trend of improved net margins will continue in the future or that margins will not decrease as a result of increased competition or customer resistance to higher prices for the Company's services.
Richard E. Gathright, Chairman and CEO commented, "We are extremely pleased to report net income of $295,000 for our first quarter of fiscal 2005. While the Company reported earnings of $209,000 for the same quarter in 2003, it is important to note that the 2003 quarter included a $757,000 gain on the extinguishment of equipment debt. The Company's first quarter 2004 performance shows strong improvement over the same period in 2003 in all financial indicators, and is a continuation of the positive trend reported in the fourth quarter of fiscal 2004."
Mr. Gathright added, "We have continued our penetration into new markets, while expanding our mobile fueling and fuel management services in historical markets, with improved utilization as we deliver more fuel. Our strengthened financial position is now allowing the Company to focus attention and resources on possible acquisitions and other strategic growth opportunities to add shareholder value."
About Streicher Mobile Fueling, Inc.
The Company provides mobile fueling and fuel management out-sourced services, primarily to businesses operating fleets of vehicles and equipment. Its specialized truck fleet delivers fuel to customers' locations, refueling vehicles and equipment and/or re-supplying storage facilities at competitive service fees and fuel prices. The Company's proprietary electronic fuel tracking system is used to measure, record, and track fuel dispensed to each vehicle and tank fueled at a customer location allowing verification of the amount and type of fuel delivered and sold, and providing customers with customized fleet fuel data for management analysis and reporting. The Company conducts operations from 17 locations serving metropolitan markets in California, Florida, Georgia, Maryland, North Carolina, Pennsylvania, Tennessee, Texas, Virginia and Washington, D.C.