United Road Services Announces Strong Quarterly Report
4 August 1998
United Road Services Announces Strong Quarterly Report, Adds New Acquisitions to its National Network
ALBANY, N.Y., Aug. 3 -- United Road Services, Inc.
today announced its financial results for the second quarter
ended June 30,1998. The Company reported second quarter revenue of
$8.5 million and net income of $457,000 or $0.05 per share. Weighted average
shares outstanding for the second quarter were 9,372,725. The Company
commenced operations in May 1998, and there are no comparable figures for the
prior year.
Edward T. Sheehan, Chairman and Chief Executive Officer said, "We are
pleased to have exceeded analysts' earnings per share estimates for the first
quarter since going public. The Company's second quarter results indicate
strong organic growth, and the favorable impact of the Company's integration
activities. We have clearly demonstrated our ability to effectively integrate
new acquisitions into our dynamic towing recovery and transport network."
In addition to releasing its quarterly earnings, United Road Services,
Inc., also announced it has acquired or completed definitive agreements to
acquire eleven towing companies and one transport company with total annual
revenues of approximately $27 million. The new companies are located in five
new towing markets, Albany, New York; Greensboro, North Carolina;
Indianapolis, Indiana; Dallas and El Paso, Texas. The other acquired
companies are located in existing markets.
"Our acquisition program is significantly ahead of our analysts'
expectations for 1998, and we continue to aggressively pursue independent
high-quality companies in strategic markets," Mr. Sheehan said. "Our annual
run rate of revenue is now $130 million and our outstanding backlog of letters
of intent has grown to 66 companies with aggregate trailing 12 month revenues
of approximately $208 million."
Formed in July 1997, United Road Services, Inc. is a leading provider of
vehicle and equipment towing and transport services in the United States, with
39 service locations in 16 states. The Company's broad range of services
includes towing, impounding and storing motor vehicles, conducting lien sales
and auctions of abandoned vehicles, and transporting new and used vehicles and
heavy construction equipment. The Company's customer base includes national
automobile leasing and insurance companies, automobile dealers, governmental
agencies, automobile auction companies, and individual motorists.
This release contains forward-looking statements. These statements are
subject to certain risks and uncertainties that could cause actual results to
differ materially from those anticipated in the forward-looking statements.
Readers should not place undue reliance on forward-looking statements, which
reflect management's view only as of the date hereof. The Company undertakes
no obligation to publicly revise these forward-looking statements to reflect
subsequent events or circumstances. Readers should also carefully review the
risk factors described in documents the Company files from time to time with
the Securities and Exchange Commission.
UNITED ROAD SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(In thousands)
June 30, December 31,
1998 1997
ASSETS (unaudited)
Current assets:
Cash and cash equivalents $40,931 $50
Trade receivables, net 4,871 --
Other receivables 1,267 --
Prepaid expenses and deposits 1,454 --
Total current assets 48,523 50
Property and equipment, net 18,648 --
Goodwill, net 65,650 --
Deferred financing costs, net 871 --
Other non-current assets 44 --
Total assets $133,736 $50
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term
debt and capitalized leases $1,247 $--
Notes payable 922 --
Accounts payable 4,582 62
Accrued income taxes 292 --
Other accrued liabilities 2,045 --
Due to related parties 798 92
Total current liabilities 9,886 154
Long-term debt and capitalized
lease obligations less
current portion 1,156 --
Deferred income taxes 811 --
Total liabilities 11,853 154
Stockholders' equity:
Preferred stock: 5,000,000
shares authorized; no shares
issued or outstanding -- --
Common stock, $.001 par value;
35,000,000 shares authorized;
Issued and outstanding 13,152,381
and 2,604,000 shares at June 30,
1998 and December 31,1997,
respectively 13 3
Additional paid-in capital 121,819 67
Retained earnings (deficit) 51 (174)
Total stockholders' equity 121,883 (104)
$133,736 $50
UNITED ROAD SERVICES, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
Six Months and Three Months Ended June 30, 1998
(Unaudited)
(In thousands, except per share amounts)
Three Months Six Months
Revenue $8,468 $8,468
Cost of revenue 5,984 5,984
Gross profit 2,484 2,484
Selling, general and
administrative expenses 1,940 2,330
Income from operations 544 154
Interest income, net 358 363
Income before income taxes 902 517
Income tax expense 445 292
Net income $457 $225
Per share amounts:
Basic earnings $.05 $.04
Diluted earnings $.05 $.04